IBM places exec on leave in wake of alleged insider trading

Rod Adkins will take Robert Moffat's place as the head of the company's Systems and Technology Group

IBM has placed Robert Moffat, the head of its Systems and Technology Group, on a leave of absence after he was charged by the U.S. Securities and Exchange Commission in an alleged insider-trading scheme.

Moffat, a senior vice president at IBM, was charged Friday with conspiracy to commit securities fraud. The SEC also charged other Wall Street and technology-company executives related to their alleged involvement in an insider-trading scandal scheme that the agency said netted millions of U.S. dollars in illicit profits. The SEC filed a complaint in the U.S. District Court for the Southern District of New York.

"In view of a U.S. federal investigation into his personal activities, [Robert] Moffat has been placed on temporary leave of absence and is no longer serving as an officer of IBM," the company said in a statement.

Rod Adkins has been named acting head of the Systems and Technology Group, IBM said. Adkins is currently the senior vice president for development and manufacturing of that group, according to IBM's Web site. Moffat's executive profile has been removed from IBM's Web site.

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 US$1 million in illegal profits.

Other executives arrested in connection with the alleged scam include Rajiv Goel, who is the Intel treasury's managing director of investments. Goel was placed on administrative leave by Intel on Friday.

Goel allegedly provided insider tips to trader Raj Rajaratnam of Galleon Group about certain Intel quarterly earnings and a pending joint venture concerning Clearwire, in which Intel has invested, the SEC said. Rajaratnam executed trades on Galleon's behalf based on the information, and the tips ultimately netted Goel close to $250,000 in illicit profits, the SEC said in the complaint.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags IBMinsider trading

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?