A former mid-level executive at chipmaker Intel has escaped jail for his role in the Galleon insider trading scandal, thanks to his co-operation with the investigation into the affair.
Last year, Raj Rajarantam, founder of the Galleon hedge fund, was convicted on 14 counts of conspiracy and securities. Rajarantam had used contacts in the technology industry to gain confidential knowledge on which to make investments.
Rajarantam's contacts include IBM executive Robert Moffat – who was jailed for six months in 2010 – and Goel, with whom he attended business school.
In 2010, Goel pleaded guilty to charges of securities fraud and conspiracy. However, his testimony against Rajarantam was crucial to the prosecution.
In recognition of his having the "good sense" to co-operate with the authorities, judge Barbara Jones sentenced Goel to two years probation, fined him $10,000 and order him to forfeit over $250,000.
"I had a serious lapse of judgment and good sense," Goel told the court.