Globalfoundries chairman linked to fraud probe

Ex-AMD CEO and chairman of Globalfoundries linked to insider trading investigation

Tags: Advanced Micro Devices IncorporatedFraudGLOBALFOUNDRIES IncorporationUSA
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Globalfoundries chairman linked to fraud probe Ruiz has been named by Bloomberg as the AMD executive who passed on insider information about the formation of Globalfoundries.
By  Mark Sutton Published  October 28, 2009

Hector Ruiz, chairman of Globalfoundries, the chip manufacturer part-owned by Abu Dhabi's ATIC and former CEO of AMD, has been linked by press reports to an insider trading scandal in the US.

According to Bloomberg, Ruiz has been identified as a previously unnamed AMD executive who passed information to hedge fund manager Danielle Chiesi, who has been linked to an insider trading ring centred on hedge fund Galleon Group.

A complaint filed by the US Attorney for New York's Southern District earlier this month, alleged that an AMD executive gave information about the spin off of AMD's manufacturing plants to create Globalfoundries, one month before the official announcement in October last year.

Ruiz has not been charged, and Globalfoundries has declined to comment on the accusations.

The $7 billion hedge fund Galleon Group is at the centre of allegations of insider trading involving a number of companies, including Intel, Google, AMD, and IBM. Founder Raj Rajaratnam and five others have been charged with securities fraud, including IBM executive Robert Moffat and and Rajiv Goel, who helped direct investments at Intel.

The FBI have described the case as the largest ever insider trading case, which is currently estimated at $20 billion, although the case is still developing.

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