Passed on Intel classified info for money
The former managing director of Intel Capital has pleaded guilty to two counts of conspiracy and securities fraud as part of an investigation into insider trading by the Galleon Group hedge fund.
Rajiv Goel admitted to passing on Intel’s earning reports before they were released to his contact at Galleon, as well as details about a planned deal between Clearwire Corporation and Sprint Nextel that Intel had invested in.
“I cannot express how sorry I am for my conduct,” Mr. Goel said in Federal District Court in Manhattan on Monday, according to the New York Times.
“I intend to do the right thing.”
Goel will be sentenced in May and faces a possible 25 years in prison. He remains free on $750,000 bail and is helping the investigators with their case.
FBI investigators tapping the phones of Galleon chief executive Raj Rajaratnam heard as Goel passed on the insider information. Goel met Rajaratnam was at the Wharton School earning his business degree.
One other former Intel executive, Roomy Khan, has also pleaded guilty to passing on information to Galleon, along with other staff from Silicon Valley firms, including IBM. Rumors abound that Hector Ruiz, head of GlobalFoundries, and former chairman of AMD, may also be involved.
