Ruiz, Moffat on Rajaratnam Witness List
Also on the list are the names of 50 companies and 17 law firms
By: Maureen O'Gara
Mar. 10, 2011 09:30 AM
Former AMD CEO Hector Ruiz and former IBM server chief Robert Moffat are both on the long list of witnesses who may or may not be called in the government's case against Galleon hedge founder Raj Rajaratnam.
Ruiz, who was forced to resign as chairman of Globalfoundries, AMD's spun-out factory operation, on allegations that he had tipped off the Rajaratnam syndicate to the Abu Dhabi deal and perhaps to AMD's huge acquisition of ATI Technologies.
Ruiz has subsequently disappeared into the woodwork and has not been charged in the largest case of hedge fund insider trading in American history.
Moffat, on the other hand, who has previously been described as not cooperating with the government, is currently doing six months in a federal prison for passing insider information to his lover, Danielle Chiesi, an ex-beauty queen turned trader, who passed it on to Rajaratnam according to government wiretaps.
Like Rajaratnam, Chiesi had maintained her innocence until recently when she pleaded guilty to charges of securities fraud and conspiracy. She is also on the witness list along with 99 other people.
Also on the list are the names of 50 companies and 17 law firms including Cisco, EMC, Google, Goldman Sachs, IBM, Intel, Juniper, McKinsey, Nvidia, Qualcomm, Sun, Boies Schiller and Flexner, Cravath, Swaine and Moore, and Wilson Sonsini that may be called to testify.
Opening statements in Rajaratnam's trial began Wednesday in a packed New York federal courtroom before a jury of 12 men and women and six alternates. The self-made billionaire could be looking at 20 years for illegally making $45 million.
His defense appears to be that the information passed to him was legitimate research, fixing any blame on the tipsters who broke a fiduciary trust.
The government's dragnet has seen dozens of traders, lawyers, corporate insiders and networking consultants charged, 19 of whom have pleaded guilty and may be called as witnesses.
A star witness is expected to be ex-McKinsey director and long-time Rajaratnam pal Anil Kumar, who has admitted to being paid hundreds of thousands of dollars by Rajaratnam for information on his clients.
Also accused of being a tipster is former McKinsey chief Rajat Gupta who allegedly tipped Rajaratnam off to Warren Buffet's $5 billion Berkshire Hathaway investment in Goldman Sachs in 2008 at the height of the financial meltdown when Gupta was on Goldman's board.
Gupta was charged with leaking last week by the SEC.
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