A high-ranking executive of chipmaker Advanced Micro Devices privately shared a lot of potentially market-moving information at crucial moments in the company’s recent history, according to court documents.
The executive is former AMD CEO Hector Ruiz, according to a person familiar with the matter. As detailed in filings, Ruiz’s disclosures offer an up-close glimpse of the information-sharing at the heart of a scandal that has rocked Galleon Management, a hedge fund controlled by billionaire trader Raj Rajaratnam.
In all, six people including Rajaratnam have been arrested on allegations they profited from trading on nonpublic information about such tech companies as Google, Akamai, Intel, Clearwire, Polycom and Sun Microsystems, now being bought by Oracle. Rajaratnam and attorneys for the other accused have denied the allegations.
Ruiz has not been accused of wrongdoing, though a criminal complaint filed with the U.S. District Court for the Southern District of New York says he leaked information about an important corporate event before it was made public. He discussed the complex spin-off of Global Foundries, the chip manufacturing company AMD now co-owns with an investment firm controlled by the government of the Arab Emirate of Abu Dhabi. The Wall Street Journal initially identified Ruiz as the AMD official named in the complaint.
Feeding Info Months in Advance
According to the complaint, Ruiz fed information to Danielle Chiesi, a suspect in the case, during the months of June through September 2008. The spin-off was announced publicly on Oct. 7 that year.
Ruiz, 63, now serves as chairman of Global Foundries and is no longer at AMD. A representative for Ruiz declined to comment, as did a spokesman for Global Foundries. AMD is “thoroughly reviewing the situation,” the company said in a statement. “We are not aware of any allegation of criminal misconduct on the part of any current or former AMD employees,…