Indian-American Intel executive pleads guilty in insider trading scam
By IANSTuesday, February 9, 2010
NEW YORK - Rajiv Goel, an Indian-American former Intel executive has pleaded guilty to providing insider information to Galleon Group’s founder, Raj Rajaratnam in the largest insider trading fraud in US history.
Goel, 51, a former Intel treasury department executive, pleaded guilty Monday to two counts of conspiracy and securities fraud. If convicted, he would face a maximum penalty of 25 years in prison.
He has admitted to providing Rajaratnam, in 2007, details about Intel’s earnings before the information was publicly available. He also told Rajaratnam about a future Sprint Nextel joint venture that Intel had targeted for a $1 billion investment.
“I cannot express how sorry I am for my conduct,” Goel said in Federal District Court in Manhattan” according to the New York Times. “I intend to do the right thing,” he said.
Prior to the plea, Goel had been placed on administrative leave. He eventually quit his job at Intel.
The case revolves around Rajaratnam, who founded the Galleon Group, a New York-based hedge fund that managed $7 billion in funds.
In total, 22 people have been charged with criminal or civil charges by the US Securities and Exchange Commission. Ten, including Goel, have pleaded guilty to date.
