According to a report from the Associated Press, six people were arrested today as part of an insider trading case, including Bob Moffat, senior vice president and general manager of IBM's Systems and Technology Group; Rajiv Goel, director of strategic investments at Intel Capital; Anil Kumar, a director at management consultancy McKinsey & Co; and Raj Rajaratnam, the founder of the $7bn Galleon Group hedge fund.[IBM, Intel execs arrested over alleged insider trading, October, 16, 2009]The AP reports that these executives (as well as two others who were not named) had passed insider information concerning Google, Polycom, and Hilton Hotels to Rajaratnam, who then executed trades that helped Galleon Technology Funds to get more than $20m in profits between January and July 2007. A report from Reuters says that trades took place at Intel Capital as well and that insider information was used in the trading of stocks for IBM, Sun Microsystems, and Advanced Micro Devices.
Rajaratnam is an immigrant from Sri Lanka. Discussion by Patrick Cleburne here.
