------ Forwarded Message > From: "dasg...@aol.com" <dasg...@aol.com> > Date: Tue, 30 Mar 2010 00:25:48 EDT > To: Robert Millegan <roads...@aol.com> > Cc: <ema...@aol.com>, <j...@aol.com>, <jim6...@cwnet.com> > Subject: Senior Exec at IBM Pleads Guilty to Securities Fraud, Pimping for > Hedge Fund >
> <New Castle Funds LLC, via its co-founder Mark Kurland, is the evil spawn of > BEAR STEARNS, whose systems for "risk management" triggered the Sept 2008 > meltdown of Wall Street resulting in the global financial crisis and > recession> > > Ex-I.B.M Executive Pleads Guilty to Fraud in Galleon Trading Case > > By MICHAEL J. de la MERCED > <http://topics.nytimes.com/top/reference/timestopics/people/d/michael_j_de_la_ > merced/index.html?inline=nyt-per> > New York Times, March 29, 2010 > > The executive, Robert W. Moffat Jr., is the 11th person to plead guilty in the > case involving the Galleon Group hedge fund and its founder, Raj Rajaratnam > <http://topics.nytimes.com/top/reference/timestopics/people/r/raj_rajaratnam/i > ndex.html?inline=nyt-per> . > > In a half-hour hearing before Judge Frank Maas of federal magistrate court in > Manhattan, Mr. Moffat, formerly a senior vice president of I.B.M.¹s systems > and technology group, pleaded guilty to one count of conspiracy and one count > of securities fraud. > > Mr. Moffat who wore a charcoal pinstripe suit and gave brief answers to > Judge Maas¹s questions admitted to providing information about a proposed > reorganization of A.M.D. and lower-than-expected earnings at Lenovo to > Danielle Chiesi, then a consultant at New Castle Funds, a hedge fund. > > Unlike some other witnesses, Mr. Moffat is not cooperating with the > government, according to one of his lawyers, Kerry Lawrence. This year, Mark > Kurland, a co-founder of New Castle Funds, pleaded guilty to insider trading > charges but also is not cooperating with the government. > > Under federal sentencing guidelines, Mr. Moffat faces up to six months in > jail. A hearing is scheduled for July 26. He still faces civil charges by the > Securities and Exchange Commission > <http://topics.nytimes.com/top/reference/timestopics/organizations/s/securitie > s_and_exchange_commission/index.html?inline=nyt-org> . > > Mr. Moffat, who was once considered a candidate to succeed Samuel J. Palmisano > <http://topics.nytimes.com/top/reference/timestopics/people/p/samuel_j_palmisa > no/index.html?inline=nyt-per> as I.B.M.¹s [CEO], was arrested in October > along with Ms. Chiesi, Mr. Rajaratnam and four others. > > ³I knew that the information I had provided to Ms. Chiesi was material and not > public,² he said in court. A lawyer for Ms. Chiesi declined to comment. > > In a statement after the hearing, Mr. Lawrence emphasized that his client had > not actually traded on any of the information. > ------ End of Forwarded Message
