Home / / Globalfoundries chairman linked to fraud probe

Globalfoundries chairman linked to fraud probe

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

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.

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.

Follow us to get the most comprehensive IT Security news delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.