Ex-Intel man gets probation in Raj Rajaratnam case

An ex-Intel executive who was involved in a major securities fraud and conspiracy investigation has been sentenced in New York.

Rajiv Goel was given probation, fined $10,000 and told to forfeit $266,000 for his part in assisting Raj Rajaratnam, the founder of hedge fund management group Galleon, to commit a series of frauds.

He was accused of giving the Galleon founder confidential information about Intel, including the company’s investments, in a bid to help him gain money from mergers and share prices, Associated Press reports.

Upon sentencing Goel apologised to Judge Barbara Jones and said he was “deeply ashamed”. He was given brief respite with the courts crediting him for his cooperation in the case, which spanned for months.

In May 2011, Raj Rajaratnam was found guilty of 14 counts of securities fraud and conspiracy.

It was alleged that he managed to rip off AMD, Intel and ATI, making around $22 million and avoiding losses of $63.8 million as a result of insider information ahead of critical business deals.

In recordings given to the court Goel is heard providing Rajaratnam with details of Intel’s billion dollar investment in a joint-venture between Clearwire and Sprint in 2008 to build a global 4G platform.

It was alleged that, with the information given, Rajaratnam went on to buy 125,800 shares of Clearwire on March 24, 2008. He reportedly gave Goel a loan of $100,000 to buy a house in 2005 and then one year later, a gift of $500,000 when his father fell sick.

Rajiv Goel admitted to this crime and was one of the witnesses who told the jury that he fed Rajaratnam insider information about his company – putting him away for 11 years.