Monday, December 14, 2009

Galleon Watch – Moffat Denies the Charges

As the December 16th deadline for indictments draws near, the defendants are making their moves.

And surprise, surprise…

The New York Times and other news sources reported late last week that Bob Moffat’s attorneys have filed a motion to dismiss the charges against the former senior IBM exec. The gist of the argument is that Moffat was only one of several IBM execs doing due diligence on Sun, and that he alone did not know enough to have passed on information about Sun’s future earnings.

He has admitted to being part of the Sun due diligence team. He has also admitted to communicating with Danielle Chiesi from time to time in that timeframe.

Well sure, he had to admit he was doing due diligence – he was head of the group that was looking into the acquisition. And he had to admit talking to Chiesi – they have him on tape. So, what do you think? How long before we know the full story?

If you missed the earlier installments of the Galleon Watch, click here.

2 comments:

Anonymous said...

Would you expect anything else but a not guilty plea at this stage in the case?

I think Moffat's argument is ludricrous, since he would have led the team and most likely would have presented its findings to the Chairman/CEO and BOD. The claim is that he leaked non-public info, but the info he leaked wasn't material.

On the other hand, IBM execs have a great reputation of doing haphazard or little to no due diligence with internal initiatives such as LEAN, GDFs, GIE, job moves to GRs, the sale of network support to AT&T, etc. Look for a major mess up and there's a arrogant and clueless exec driving it. FUMU rules at IBM.

Back to Moffat, it is extremely rare that a Federal indictee can beat the Feds with all the investigative resources available to them. I know of top flight attorneys, among the best in the business, who have tried Federal cases for decades before they won a non-guilty verdict.

I'd also doubt that Moffat has any information useful to the Feds to nail the Raj.

Colette said...

Anon -- yup, I would expect him to fight fight fight even after he is convicted. See the latest update -- indictment date moved another 30 days -- looks like perhaps a deal in the works.