Former Intel (INTC) Executive Pleads Guilty To Fraud
February 08, 2010 6:57 PM
Rajiv Goel, a former Intel Capital director, pleaded guilty on Monday to the charge that he had received money from friend and Galleon Group hedge fund founder Raj Rajaratnam.
"Although we lived very different lives, we kept in close contact and I received money from him for personal financial needs," Goel said in court. "Over a number of years, he made trades that made me profits."
Goel is a former director in the treasury group of Intel Capital, the venture capital arm of Intel Corp. (Nasdaq: INTC) who met Rajaratnam, founder and manager of Galleon Group, about 25 years ago at the Wharton School of Business at University of Pennsylvania.
Goel said that he and Rajaratnam conspired to profit on insider information about Intel Corp. quarterly earnings and Intel Corp. investments in Clearwire Corporation (Nasdaq: CLWR).
"I know it was wrong to give Raj Rajaratnam the information. I gave it to him because of my friendship," said Goel.
A sentencing proceeding is scheduled for May 28 and Goel faces up to 20 years in prison.
