Intel Corp (INTC)

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Ex-AMD CEO Ruiz Was Galleon Source

http://online.wsj.com/article/SB125668266149911475.html

One of the technology industry's highest-profile executives has become ensnared in an alleged insider-trading case that is shaking the corporate and financial worlds.

A criminal case filed by the Manhattan U.S. Attorney's office earlier this month alleged that an unnamed Advanced Micro Devices Inc. executive shared confidential information about the chip maker in 2008 with a defendant in the case. That executive is Hector Ruiz, who at the time was AMD's chief executive officer, according to a person familiar with the matter.

Mr. Ruiz, who is not a defendant, declined to comment. So did a lawyer for Danielle Chiesi, a defendant in the case and the person to whom Mr. Ruiz allegedly passed the information.

The involvement of Mr. Ruiz, 63 years old, adds the biggest name yet to the case, in which Raj Rajaratnam, co-ounder of the hedge fund firm Galleon Group, and five others including Ms. Chiesi face federal criminal and civil charges. All have said they are innocent. Galleon said Tuesday it has nearly completed liquidating its funds.

A complaint filed in a New York federal court alleged that the AMD executive now identified as Mr. Ruiz shared confidential information with Ms. Chiesi about a 2008 reorganization of AMD. It spun off its manufacturing operations to a joint venture bankrolled by investors from Abu Dhabi. Mr. Ruiz became chairman of the new company, Globalfoundries Inc. He continues to serve in that role.

Globalfoundries declined to comment. "We are continuing to evaluate the matter and we are not aware of any allegation of criminal misconduct on the part of AMD or any current or former employees," said Drew Prairie, an AMD spokesman, who declined to comment on the investigation.