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Intel exec pleads guilty in insider trading scam

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CIOL Bureau
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NEW YORK, USA: Rajiv Goel, an Indian-American former Intel executive has pleaded guilty to providing insider information to Galleon Group's founder, Raj Rajaratnam in the largest insider trading fraud in US history.

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Goel, 51, a former Intel treasury department executive, pleaded guilty Monday to two counts of conspiracy and securities fraud. If convicted, he would face a maximum penalty of 25 years in prison.

He has admitted to providing Rajaratnam, in 2007, details about Intel's earnings before the information was publicly available. He also told Rajaratnam about a future Sprint Nextel joint venture that Intel had targeted for a $1 billion investment.

"I cannot express how sorry I am for my conduct," Goel said in Federal District Court in Manhattan" according to the New York Times. "I intend to do the right thing," he said.

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Prior to the plea, Goel had been placed on administrative leave. He eventually quit his job at Intel.

The case revolves around Rajaratnam, who founded the Galleon Group, a New York-based hedge fund that managed $7 billion in funds.

In total, 22 people have been charged with criminal or civil charges by the US Securities and Exchange Commission. Ten, including Goel, have pleaded guilty to date.

©IANS

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