Former Intel Exec Sentenced for Securities Fraud

A former executive at Intel Corporation has been sentenced to two years of probation for his role in an insider trading and securities fraud scheme in which he provided non-public information to the head of Galleon Group that was used to make trades.

In April, 2007, Rajiv Goel, who at the time worked as an executive for Intel, passed along confidential inside information to Raj Rajaratnama, the head of Galleon, detailing Intel’s very positive quarterly earnings before it was released to the public. Using this information, Rajaratnama made a number of securities trades, and recommended that others did as well.

When the positive quarterly earnings were eventually announced to the public, Rajaratnama sold his stock and earned $2.4 million because of it.

Furthermore, many times in 2008 Goel provided additional information about Intel’s investment in a company called Clearwire Corporation to Rajaratnam. With this illegal inside information in hand, Rajaratnam again made a number of securities trades – and recommended that others do so as well – and illegally earned more than $850,000 in the process.

Goel’s role in the securities fraud scam was eventually revealed, and in February 2010 he pled guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. In addition to his probation, Goel was also ordered to pay forfeiture of $266,649, a $10,000 fine, and a $200 special assessment fee.

Rajaratnam was convicted of 14 counts of conspiracy and securities fraud. He was sentenced to 11 years in prison and ordered to pay forfeiture in the amount of $53,816,434 along with a $10 million fine.

If you or a loved one has been taken advantage of by a securities fraud scam, call Sokolove law today to speak to a stockbroker fraud attorney about pursuing a securities fraud lawsuit.

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