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Bob Moffat Insider Trading | IBM | Arrested | Danielle Chiesi

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Executives from Intel and IBM were amongst six individuals arrested today amidst allegations that they were involved in a hedge fund’s insider trading scam.

According to the report from the Associated Press, the arrested parties include IBM SVP and GM Bob Moffat, Intel Capital Director of Strategic Investments Rajiv Goel, as well as Raj Rajaratnam, partner in the $7 billion Galleon Investment Group.

The US SEC has alleged that Moffat, Goel, and four additional parties passed insider information on Google, Polycom and Hilton Hotels to Rajaratnam who turned a $20 million profit on the information over a six month period in 2007. Reuters reports that the trades also occurred at Intel Capital, and that the insider information was also used to trade IBM, Sun Micro and AMD stocks.

The SEC has filed civil charges related to the insider trading in the US District Court for the Southern District of New York. However, it is not yet clear what criminal charges are being brought against Rajaratnam, as reports conflict on the number of securities fraud and conspiracy charges being leveled.