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.
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Jane McEntegart is a writer, editor, and marketing communications professional with 17 years of experience in the technology industry. She has written about a wide range of technology topics, including smartphones, tablets, and game consoles. Her articles have been published in Tom's Guide, Tom's Hardware, MobileSyrup, and Edge Up.
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wildwell This story isn't over, we'll keep hearing about more and more NASDAQ tech companies executives tied to this scandal.Reply -
huron wildwellThis story isn't over, we'll keep hearing about more and more NASDAQ tech companies executives tied to this scandal.Reply
Have you heard something that we haven't? How do you know? -
Honis ReplyEx-AMD Chief Tied to Insider Trading Scandal
Jane, there was more information in your article about other high ups in this scandal than Hector Ruiz. Why the one sided title?
Glad to see the government cracking down on these people. -
JMcEntegart HonisJane, there was more information in your article about other high ups in this scandal than Hector Ruiz. Why the one sided title?Glad to see the government cracking down on these people.Reply
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. :) -
Yoder54 Why is it that it is always these rich-ass CEO's that try to cheat for some extra cash? All the while us honest, hard working, tax paying, law abiding citizens can hardly make ends meet with our bogus health insurance policies, and false promises of a prosperous future. Ain't that the shits.Reply -
Honis JMcEntegartToday'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.Reply -
tester24 When did this come about? As others have stated this is the first we've heard about it... If not someone put some links up on this.Reply -
thejerk HonisI 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.Reply
You bitches need to quit crying. -
eyemaster Yoder54Why is it that it is always these rich-ass CEO's that try to cheat for some extra cash? All the while us honest, hard working, tax paying, law abiding citizens can hardly make ends meet with our bogus health insurance policies, and false promises of a prosperous future. Ain't that the shits.Reply
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.