Former IBM executive Robert Moffat jailed for 6 months for ‘insider trading’

September 14th, 2010 - 10:51 pm ICT by Aishwarya Bhatt  

Sep 14 (THAINDIAN NEWS) Former IBM senior executive, Robert Moffat has been sentenced to 6 months in prison for what authorities in the United States are calling the biggest insider trading scandal in the country’s history.

Moffat leaked company information to Danielle Chiesi to whom he admitted to having an intimate relationship with.

Twenty-one people have been charged in connection with the crime and authorities say the illegal insider trading resulted in a profit of more than $50 million.

Moffat was charged with securities fraud and conspiracy to commit securities fraud. He pleaded guilty to both charges with his lawyers claiming that he was played by his “intimate” friend, Daniele.

In sentencing, the Judge Deborah Batts wondered why Moffat would decide to betray the trust of a company he has worked with for 30 years. The International Business Machines (IBM) Corp. is the only company Moffat has worked for and he was in line to become the company’s chief executive officer.

His lawyers argued that Moffat was played by Daniele and pleaded that the Judge for probation, which was not accepted by the Judge giving him the maximum term, the prosecutors asked in their submission.

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