Ex-AMD Chief Tied to Insider Trading Scandal
Earlier this month the SEC arrested six people in the largest ever insider-trading scheme involving a hedge fund. Included were Galleon Chief Raj Rajaratnam and executives at Intel, IBM and Bear Stearns. Today we learn of AMD's Hector Ruiz's involvement.
The New York Times reported that the SEC accused the group of earning more than $20 million from illegal trading in companies like Google, Akamai and Hilton Hotels over nearly three years. The paper cites officials who say Rajaratnam is alleged to have had a huge network of informants who fed him tips for cash or in some cases for other insider information.
One example is Intel's Rajiv Goel. According to the New York Times, Goel told Mr. Rajaratnam that he was tired of working at Intel and would trade information about a potential investment in Clearwire for a job with one of Mr. Rajaratnam’s “powerful friends.” Mr. Rajaratnam went on to make a profit of $579,000 from trading in Clearwire stock.
Danielle Chiesi, a former Bear Stearns executive who worked at another hedge fund, New Castle Partners, is said to be one of the main conspirators and was among those arrested earlier this month. Bloomberg today cites a person familiar with the investigation who says Hector Ruiz is the unnamed AMD exec alleged to have provided Chiesi with information. This included details about the timing of the spinoff of AMD's manufacturing operations into a joint venture with the Abu Dhabi government, a business we now know to be AMD's Globalfoundries.
More on this Wall Street scandal as things develop. For now you can fill yourself in on all the nitty gritty details by checking out the full scoops on both New York Times and Bloomberg.

Today's news about Ruiz is the most recent development in an ongoing story. That said, the whole thing is quite confusing so I wanted to include a recap of what has transpired so far.
Have you heard something that we haven't? How do you know?
Glad to see the government cracking down on these people.
Today's news about Ruiz is the most recent development in an ongoing story. That said, the whole thing is quite confusing so I wanted to include a recap of what has transpired so far.
I would agree but this is Tom's first article about the scandal (unless I missed it) so this is technically all new information for Tom's readers.
You bitches need to quit crying.
Quite simply because you don't have the millions of $$$ necessary to invest in a company where the shares going up a few % points will make you any significant money. For example, to make 500,000 $, you need maybe 5,000,000 at a 10% increase. If you have that much money invested in a company, you won't be on the Toms Hardware forums.
who would have thought?!?
poor people are lazy, thats why they are poor.
i really dislike it when people do that, please stop.
Lazy is not the opposite of greedy....
Poor people are poor because of a lack of oppourtunity. Now some poor people make opportunity for themselves and become not poor. But rich people don't even have to make opportunites for themselves, the apportunities come to them. They just latch on. This is also called the stock market.
/amband cheepstuff for a ignorance.
Bush is the epitome of a 7th generation rich kid idiot who inherited wealth and opportunity, just like ChuvelxD's excellent commentary....
Poor people are poor because of a lack of oppourtunity. Now some poor people make opportunity for themselves and become not poor. But rich people don't even have to make opportunites for themselves, the apportunities come to them. They just latch on. This is also called the stock market.
/amband cheepstuff for a ignorance.
i was using that as an example. i'm just saying it is wrong to say someone is greedy because they are wealthy. there are a lot of hardworking poor people in the world, and there are a bunch of lazy/greedy/whatever character flaw here people in the world. it is wrong to generalize someone by one vague characteristic alone.