Report: Former AMD CEO Ruiz was source in scandal

AMD's former CEO Hector Ruiz reportedly shared confidential information about AMD with a trader

Former Advanced Micro Devices CEO Hector Ruiz allegedly shared confidential information with a Wall Street trader connected to an insider-trading scandal, according to a news report on Tuesday.

A criminal case filed by the U.S. Securities and Exchange Commission on Oct. 16 alleged that an AMD executive shared confidential information about the company's reorganization in 2008 with a Wall Street executive, Danielle Chiesi. The AMD executive wasn't named in the court filing, but the Wall Street Journal said in a news report on Tuesday that it was Ruiz, citing unnamed sources. Chiesi works for the hedge fund New Castle Funds.

The SEC last week charged six individuals, including Wall Street and technology company executives, with 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.

Ruiz was AMD's CEO until July of last year, after which he was replaced by Dirk Meyer. However, he continued as the company's chairman until he stepped down in March. Ruiz is now the chairman of GlobalFoundries, AMD's manufacturing spinoff. AMD earlier this year spun off manufacturing assets to form GlobalFoundries in a joint venture with Advanced Technology Investment Company, which is owned by the Abu Dhabi government.

Ruiz is the latest in a list of technology executives who have allegedly shared information with the traders in the case. The executives charged included Robert Moffat, senior vice president and executive in IBM's systems and technology group, and Rajiv Goel, who is Intel treasury's managing director of investments. Intel and IBM have placed those executives on leave.

Other individuals charged by the SEC include Raj Rajaratnam, a portfolio manager with hedge fund Galleon Group; Anil Kumar, a director at McKinsey; and Mark Kurland of New Castle Funds.

McKinsey's Kumar was also charged with sharing information about AMD's reorganization in the case. Kumar allegedly tipped off Rajaratnam about pending transactions involving AMD and two Abu Dhabi-based "sovereign entities," the SEC said. Rajaratnam then made trades on Galleon's behalf based on the insider information.

AMD has had multiple transactions involving the Abu Dhabi government in recent years. In 2007, the Abu Dhabi government's Mubadala Development Company paid US$622 million to acquire an 8.1 percent stake in AMD.

GlobalFoundries declined to comment on the report, saying the allegations predated the launch of the company.

AMD is reviewing the situation, said Drew Prairie, an AMD spokesman. "We are not aware of any allegation of criminal misconduct on the part of any current or former AMD employees," Prairie said.

Join the newsletter!

Or

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 AMDSEC

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

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

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.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?