Intel’s Indian-born MD spared jail in Galleon case
A former Intel Corp executive, whose trial testimony helped convict hedge fund titan Raj Rajar-atnam, avoided prison time on Monday for his role in the biggest insider-trading prosecution of a generation.business Updated: Sep 25, 2012 21:16 IST
A former Intel Corp executive, whose trial testimony helped convict hedge fund titan Raj Rajaratnam, avoided prison time on Monday for his role in the biggest insider-trading prosecution of a generation.
Rajiv Goel is the third former friend and business associate, who testified against Rajaratnam at his 2011 Manhattan federal court trial, to be handed a sentence of probation. Goel is among scores of fund managers, traders, lawyers, executives and consultants caught in a US government crackdown on Wall Street insider trading in the past four years.
In sentencing Goel, 54, to two years probation, U.S. District Judge Barbara Jones said his cooperation with the government “did go beyond” ordinary assistance. Jones fined Goel $10,000 and ordered him to forfeit $266,000.
Goel, who has not worked since losing his job as treasury group manager with chipmaker Intel following his October 2009 arrest, pleaded guilty in February 2010 to being part of Rajaratnam’s network of insiders.
The charges of securities fraud and conspiracy carried a maximum term of 25 years. Galleon Group hedge fund founder Rajaratnam, who was convicted of 14 charges of securities fraud and conspiracy by a jury, is serving an 11-year term.
Rajaratnam’s appeal of secretly-recorded telephone calls used by the FBI to gat-her evidence is scheduled for October 25.
Two other former associates of Rajaratnam were also sentenced to two years probation following their trial testimony. They were Anil Kumar, a former McKinsey & Co consultant who also met Rajaratnam at Wharton, and former Galleon money manager Adam Smith.
First Published: Sep 25, 2012 21:14 IST