Former Advanced Micro Devices Inc. (NYSE:AMD) chief executive Hector Ruiz hasn't been formally charged in the Galleon Management LLC
insider trading scandal, but his alleged role has led to an abrupt departure from his present job.
Ruiz was until Monday nonvoting board chairman of Globalfoundries, the semiconductor manufacturing business that AMD in March
spun out into a joint venture with Middle Eastern investors. A
statement posted on the Globalfoundries Web site says Ruiz will take a voluntary leave of absence effective immediately. He will formerly depart the company in January.
Ruiz has been identified by The Wall Street Journal as the AMD executive who allegedly fed information about the Globalfoundries spinout to New Castle Funds LLC consultant Danielle Chiesi. He is one of several high-profile corporate executives connected to the scandal, including Robert Moffat of IBM Corp. (NYSE:IBM) and Rajiv Goel of Intel Capital.
Those executives, both of whom have been formally charged, have also been relieved of their duties. But what of the corporations they've left behind? Are IBM, AMD, Intel Capital and other public companies not connected with Galleon taking measures to prevent leaking of material nonpublic information? Kenneth Klee wondered as much in
his column in the
current issue of The Deal magazine.
In a world where corporate executives and private investors regularly cross paths, it's worth a read. -
Suzanne Stevens
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