Linux Containers Authors: Liz McMillan, Yeshim Deniz, Elizabeth White, Pat Romanski, Zakia Bouachraoui

Related Topics: IBM Cloud, Linux Containers, Open Source Cloud

IBM Cloud: Article

Ex-IBM Server Chief Expected To Plead Guilty to Corruption Charges

Moffat had access to the Sun financials because IBM was doing due diligence on the company with a thought to buying it

Robert Moffat, the former head of both IBM's server and chips units, who was arrested in October in the first dragnet of culprits connected with the now infamous Galleon Group hedge fund and its alleged insider trading ring, is expected to wave indictment and plead guilty, according to papers filed with the courts Tuesday.

Based on wire taps, Moffat, widely characterized as a potential replacement for IBM CEO Sam Palmisano, was charged in October with disclosing the earnings of both IBM and Sun Microsystems and the details of an AMD restructuring to Danielle Chiesi, then a trader at New Castle Funds.

Moffat had access to the Sun financials because IBM was doing due diligence on the company with a thought to buying it. He knew all about AMD's deal with Abu Dhabi because IBM Microelectronics, which he ran, was AMD's semiconductor process partner and would be licensing its spun-off factories.

Chiesi is supposed to have traded on the insider information herself and shared it with Raj Rajaratnam, the head of Galleon and ring's alleged kingpin. The authorities say the pair made a killing.

All the insider trading done almost exclusively in tech stocks is supposed to have added up to a $50 million windfall.

If the signals are right, Moffat will become the 11th person out of the 21 charged to plead guilty after waving indictment in what is supposed to be the biggest hedge fund insider trading case ever in America.

If he waives indictment, the prosecutors will file a so-called "criminal information," a stand-in for a grand jury indictment. It's not clear when Moffat would appear in court. It's also not clear if he will cooperate with the authorities as others have and testify.

Of the six people originally arrested in October, only Rajaratnam and Chiesi have pleaded not guilty. Rajaratnam is trying to get the thousands of hours of wire taps thrown out of court. The pair goes to trial on both civil and criminal charges later this year.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

IoT & Smart Cities Stories
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...