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Former IBM Executive Pleads Guilty to Fraud in Insider Trading Case

Last month, Robert W. Moffat Jr., a former IBM senior executive, pleaded guilty to supplying confidential information to a hedge fund consultant who has been accused of engaging in an insider trading scheme.

Mr. Moffat is the eleventh person to plead guilty to one count of conspiracy and one count of securities fraud in the case involving the Galleon Group hedge fund and Raj Rajaratnam, the founder. Allegedly, Mr. Moffat had provided confidential information about Advanced Micro Devices and Lenovo. He had apparently informed Danielle Cheisi, a then consultant at New Castle Funds, a hedge fund, that there was a proposed reorganization of A.M.D. and that Lenovo had lower than expected earnings.

“I knew that the information I had provided to Ms. Cheisi was material and not public,” Mr. Moffat said in court.

Mr. Moffat’s troubles don’t end with this particular case, though, as he still faces charges by the U.S. Securities and Exchange Commission.

Mark Kurland, the co-founder of New Castle Funds, has pleaded guilty to charges of insider trading.