Thursday, November 5, 2009

Galleon Watch - 11/05/09 Update

It looked to be a quiet week for news on the Galleon insider trading scandal until today. The scope is broadening and the chips are falling:

Friday October 30th – IBM announced that Bob Moffat (who was previously placed on leave) was no longer an IBM employee. (Anyone want to cheer with me?) Reports are mixed as to whether he left voluntarily or was forced to leave. Rod Adkins was promoted to IBM Senior VP.

Tuesday November 3rd – Information Week and others reported that AMD Chairman Hector Ruiz stepped down from his post after being identified (but not yet indicted) as a source in the case.

Thursday November 5th – The New York Times,Reuters, and other news sources reported that an additional fourteen people were charged with fraud and conspiracy, with $20 million more in profits uncovered. Five of the alleged participants, including Roomy Khan (thought to be a cooperating witness) have already pleaded guilty.

Click here if you missed the first installment of the Galleon Watch.

3 comments:

Anonymous said...

Wonder how this will affect their PBCs. ;-)

Too bad for IBM they weren't part of this year's 'resource actions'.

Anonymous said...

Ha! I'm sure there are plenty of us who would have liked to have seen Moffat -- the king of resource actions -- be part of one himself!

Anonymous said...

LOL! IBM stands for 'Incredibly Bad Management' -- it's good to see the chickens come home to roost. IBM could have been such a great company, but I get the feeling it's taking the Enron route. You can now see where the dozens of levels of managers get their role models for behavior.