Rajiv Goel, the former managing director for Intel Capital who was arrested back in October for his participation in an insider trading scheme, yesterday plead guilty to fraud.
The disgraced exec also admitted to providing Raj Rajaratnam, founder of the Galleon Group hedge fund, with confidential information concerning Intel’s finances and the joint venture between Clearwire and Sprint-Nextel.
The guilty plea follows charges filed last year by the US SEC alleging that Moffat, Goel, and at least four additional parties passed insider information on Google, Polycom and Hilton Hotels to Rajaratnam who turned a $50 million profit on the information over a six month period in 2007. Further investigative reporting revealed that the trades were executed at Intel Capital, and that the insider information was also used to trade IBM, Sun Micro and AMD stocks.
Goel is the ninth to admit guilt the case, which has grown from an initial arrest of six executives, to more than 21, including IBM SVP and GM Bob Moffat and ex-AMD CEO Hector Ruiz. The defendants face sentences of up to 20 years in prison, with a verdict set to be given on May 28.
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