Ex-AMD CEO linked to Galleon scandal - Yahoo! Finance

|

Wednesday October 28, 08:24 AM
Reuters

Advanced Micro Devic...
AMD
6.91
-1.21%
FTSE 100  Gainers  Losers
FTSE 250 Quotes by Sector
Dow Jones  Nasdaq  S&P 500
DAX 30   Eurostoxx 50
 

Message Boards
Property Pensions
Savings Utilities
UK Stocks Investing
Speach bubble Best Sin - Points Awarded
Speach bubble PISS OFF GYSMYS
Speach bubble Gismys - What a D.i.c.k!
Speach bubble HOW TO BE SAVED(BORN AGAIN) INTO THE FAMILY OF GPOD!!!
Speach bubble GOD LOVES TO USE THOSE THAT THE WORLD THINKS ARE FOOLISH!!

Recession

  Just how deep is the trough?
Banking Crisis
 

Are the banks out of the woods?

Stock Market Crash
  Explaining the global market turmoil
Money saving Tips
 

How to beat the credit crunch

Isn't Finance Funny?
 

Scandals and silliness


Ex-AMD CEO linked to Galleon scandal

SAN FRANCISCO (Reuters) - A former chief executive of Advanced Micro Devices became the biggest name to be linked to the Galleon Group insider-trading scandal, when the Wall Street Journal reported on Tuesday that he leaked information about the microprocessor maker in 2008 to a hedge fund manager.

Hector Ruiz is the unnamed AMD executive accused in a criminal case, filed by the Manhattan U.S. Attorney's office this month, of sharing information with New Castle portfolio manager Danielle Chiesi, the newspaper reported, citing a person familiar with the matter.

New Castle was among the funds accused by U.S. authorities of engaging in the insider-trading scheme that has engulfed hedge fund Galleon Group.

New York-based Galleon is at the centre of the biggest insider-trading case in decades.

The Wall Street Journal reported that Ruiz specifically imparted sensitive information about the restructuring of AMD at the time, in which it spun off its manufacturing operations into the Globalfoundries joint venture with an Abu Dhabi firm.

Ruiz is now chairman of contract chipmaker and AMD-affiliate Globalfoundries.

Federal prosecutors have accused Raj Rajaratnam, Galleon's co-founder, and five others of illegally trading on non-public information in a scheme that netted them $20 million (12.2 million pounds). Rajaratnam has said he is innocent.

Ruiz and AMD did not reply to requests for comment.

Globalfoundries spokesman Jon Carvill said the company had not been contacted by the Justice Department or any other government agency in connection with the insider-trading case. He said Globalfoundries had no other comment because the issue predated the launch of Globalfoundries.

(Reporting by Ian Sherr and Edwin Chan; Editing by Toni Reinhold)

Send Article by Email  |  Send Article by IM  |  Blog This with Y! 360  |  Printable View


More Quotes and News:

Full Coverage : Business News for Mobile
  Previous article : UBS losses pile up as clients fear tax scrutiny ( )
  Next article : China Sept auto sales soar 77.9% ( )
Yahoo! Finance : Finance News
  Previous article : BAA says worst is over ( Reuters)
Yahoo! Finance : Financial Scandals | Financial Scandal News Headlines - Yahoo! Finance UK
  Previous article : Mortgage lender guilty of 'serious failings' ( ShareCast)
  Next article : Inspector Cites Widespread Fraud in Home-Buyer Tax Credit [at BusinessWeek Online] ( BusinessWeek Online)
Yahoo! Finance : Finance News

Copyright © 2009 Reuters. All rights reserved.