Former Intel Exec Avoids Prison in Insider Trading Case
Former Intel executive Rajiv Goel was sentenced Monday to two years of probation for his participation in an insider trading scheme.
A former Intel executive was sentenced on Monday to two years of probation for his participation in an insider trading scheme.
Rajiv Goel, once a managing director in Intel's treasury department, was sentenced this week by U.S. District Judge Barbara S. Jones.
In April 2007, Goel began providing inside information to Galleon Group chief Raj Rajaratnam regarding Intel's quarterly earnings before the company publicly announced its positive results. With those early details, Rajaratnam and others were able to execute securities trades. Once Intel's earnings were disclosed, Rajaratnam sold his stock and illegally earned more than $2.4 million, according to the U.S. Attorney's Office.
Goel later provided Rajaratnam with inside information about Intel's investment in Clearwire Corporation – information Rajaratnam used to again execute securities trades and illegally earn upwards of $850,000.
Goel pleaded guilty in February 2010 to one count of conspiracy to commit securities fraud, and one count of securities fraud. In addition to probation, Goel on Monday was ordered to pay forfeiture of $266,649, a $10,000 fine, and a $200 special assessment fee.
A jury convicted his cohort Rajaratnam in of 14 counts of conspiracy and securities fraud, and he was to 11 years in prison and ordered to forfeit $53.8 million, plus a $10 million fine.
Rajaratnam has been accused of making $63.8 billion from illegal stock trades on tips from other companies as well, including IBM, Google, and Advanced Micro Devices.
"His sentencing should serve as a sober reminder to the financial sector and corporate executives that law enforcement officials are watching the markets closely, looking for evidence of illegal trading activity," former Assistant U.S. Attorney and SEC Assistant Director Bill Currier said in October, follow Rajaratnam's sentencing.