IBM executive accused of insider trading out of a job
- 04 November, 2009 08:57
The IBM executive charged with insider trading by the U.S. Securities and Exchange Commission is out of a job at Big Blue.
Robert Moffat, the head of IBM's Systems and Technology Group, was charged with conspiracy to commit securities fraud in mid-October and subsequently placed on a temporary leave of absence.
IBM this week confirmed that Moffat's leave of absence has become a permanent one, although the company did not say if he was fired or resigned.
"Bob Moffat, who had been placed on a leave of absence as a result of a U.S. federal investigation into his personal activities, is no longer an employee of I.B.M.," the company said in an e-mailed statement. "As a matter of policy we will not comment on the personal issues of current or former employees and therefore we are not addressing the particulars of Mr. Moffat's departure."
When Moffat was placed on a leave of absence, IBM named executive Rod Adkins the acting head of the Systems and Technology Group. He has now been appointed senior vice president of the division, the same title previously held by Moffat, the company said.
Moffat allegedly provided insider information when IBM was considering acquiring Sun Microsystems to Danielle Chiesi, a portfolio manager at New York-based New Castle Funds. Chiesi allegedly made trades on behalf of New Castle Funds based on the tips and generated about $1 million in illegal profits.
Adkins is a 28-year veteran of IBM, previously serving as head of development and manufacturing in the Systems and Technology Group. In that role he was responsible for IBM's microelectronics division that develops semiconductor products for IBM machines and OEM clients. As head of Systems and Technology, Adkins now has responsibility over all of IBM's semiconductor, server, storage and system software businesses.
The IDG News Service contributed to this report.