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Ex-AMD CEO linked to Galleon via info leak
Wed, Oct 28, 2009
Reuters

SAN FRANCISCO, US - 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 US 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 US 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 Mr 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.

Mr 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 nonpublic information in a scheme that netted them US$20 million($27.9million).

Rajaratnam has said he is innocent.

Mr 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.

 

 
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