Raj Jury Told Tipster & Ex-AMD CEO Were ‘Intimate’
Ruiz’s spokesman immediately denied Ruiz’s relationship with the ex-beauty queen-turned-Wall Street trader was intimate
By: Maureen O'Gara
Mar. 17, 2011 10:00 AM
Ex-McKinsey higher-up-turned-government witness Anil Kumar, who was paid millions by Raj Rajaratnam for inside information on his clients, testified at Rajaratnam's trial Monday that Rajaratnam told him in 2008 that his value as an AMD source had been "diminished" because another of his tipsters, Danielle Chiesi, had an "intimate relationship" with then-AMD CEO Hector Ruiz that gave her the inside track.
Chiesi was simultaneously being fed information on AMD and IBM by ex-IBM senior executive Robert Moffat, who admitted last year to being her lover and is now doing time for the company secrets he whispered in her ear.
Ruiz's spokesman immediately denied Ruiz's relationship with the ex-beauty queen-turned-Wall Street trader was intimate.
Ruiz seems to be the only person connected to the inside trading ring who has not been charged with anything.
Kumar also testified that Rajaratnam suggested that he warn Ruiz that Chiesi was a chatterbox and spreading what she learned to others on Wall Street. Rajaratnam's ostensible purpose was to keep the inside information to himself to give him even more of an edge.
Kumar, who gave Rajaratnam the financial details and timing of AMD's spin-off of its factories and identified the buyer as Abu Dhabi's Mubadala Development Company, said, "I couldn't do it, I couldn't say, ‘I heard you were having a relationship with Danielle.'"
A 2008 wiretap played for the jury has Chiesi telling Rajaratnam about the deal: "Hector told me that he went from saying he thinks ‘everything is fine' to he thinks ‘it's 110% fine.'" In that same wiretap Rajaratnam tells Chiesi, "I own 25 million in AMD."
Kumar has already pleaded guilty to charges of conspiracy and securities fraud. Chiesi has also pleaded guilty, but is not cooperating with the prosecution.
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