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 insider 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

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers


This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang


It really doesn’t get more “gaming laptop” than this.

Jack Jeffries


As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr


The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?