Welcome!

Government Cloud Authors: Elizabeth White, Liz McMillan, Pat Romanski, Dana Gardner, Gopala Krishna Behara

Related Topics: IBM Cloud, Government Cloud

IBM Cloud: Article

‘Tipper A’ Had Her Fingers in the Intel Cookie Jar Before

The Mercury News says the information Khan faxed to the Galleon covered the first two quarters of 1998 and included backlog

Turns out one of the government's key witnesses in its insider trading case against the Galleon Group hedge fund - the one that's brought down a senior IBM executive a heartbeat or two away from IBM's CEO - used to be employed by Intel and was charged in 2001 in a sealed criminal complaint with wire fraud for sending material information about Intel's financials to Galleon according to a story by a Pulitzer Prize-winning reporter at the San Joe Mercury News.

Roomy Khan has been identified by the Wall Street Journal and the New York Times as the "confidential" informant the SEC calls "Tipper A" in its current suit against billionaire Galleon CEO Raj Rajaratnam and his five confederates, including Robert Moffat, the guy who ran IBM's $19-billion-a-year server and storage unit until last week. It's supposed to be the largest case of insider trading involving a hedge fund ever brought to light.

The Mercury News says the information Khan faxed to the Galleon covered the first two quarters of 1998 and included backlog and billing reports, product pricing and MPU sales data. The information was sent from an Intel fax machine in Santa Clara, California to Galleon in New York.

The government, which used wire taps to bust open the case, which dates back to 2006 and involves the stock of 10 public companies, says that one of the companies whose stock Galleon traded on insider earnings information was Polycom, which put senior VP Sunil Bhalia, who ran its voice communication business, on administrative leave late last week without explaining why, according to an SEC filing last Thursday.

Khan pleaded guilty in 2001 and was sentenced to six months of home detention, a $30,000 fine and $120,000 restitution, according to Bloomberg who quoted an FBI spokesman.

She's reportedly been a so-called cooperating witness in the latest case since November of 2007 in hopes of a reduced sentence on charges of securities fraud and conspiracy.

Rajaratnam, a dual citizen of the US and Sri Lanka, reportedly figured Khan was taping him and was about to leave the county when he was arrested 10 days ago. He is currently free on $100 million bail and is shutting down Galleon.

Khan also allegedly passed on information on Google and Hilton Hotels. Rajaratnam allegedly got insider information on Intel's 4Q06, 1Q07 and 3Q07 earnings and outlook as well as Intel's big investment in Clearwire from Intel executive Rajiv Goel, now also on administrative leave.

The ring had an uncharged insider at AMD described by the Justice Department in its suit as the executive who's "been preaching this deal for so long," meaning the fab spin-off and frankly there aren't too many of those.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
IT professionals are also embracing the reality of Serverless architectures, which are critical to developing and operating real-time applications and services. Serverless is particularly important as enterprises of all sizes develop and deploy Internet of Things (IoT) initiatives. Serverless and Kubernetes are great examples of continuous, rapid pace of change in enterprise IT. They also raise a number of critical issues and questions about employee training, development processes, and opera...
This month @nodexl announced that ServerlessSUMMIT & DevOpsSUMMIT own the world's top three most influential Kubernetes domains which are more influential than LinkedIn, Twitter, YouTube, Medium, Infoworld and Microsoft combined. NodeXL is a template for Microsoft® Excel® (2007, 2010, 2013 and 2016) on Windows (XP, Vista, 7, 8, 10) that lets you enter a network edge list into a workbook, click a button, see a network graph, and get a detailed summary report, all in the familiar environment of...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
AI and machine learning disruption for Enterprises started happening in the areas such as IT operations management (ITOPs) and Cloud management and SaaS apps. In 2019 CIOs will see disruptive solutions for Cloud & Devops, AI/ML driven IT Ops and Cloud Ops. Customers want AI-driven multi-cloud operations for monitoring, detection, prevention of disruptions. Disruptions cause revenue loss, unhappy users, impacts brand reputation etc.
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Atmosera delivers modern cloud services that maximize the advantages of cloud-based infrastructures. Offering private, hybrid, and public cloud solutions, Atmosera works closely with customers to engineer, deploy, and operate cloud architectures with advanced services that deliver strategic business outcomes. Atmosera's expertise simplifies the process of cloud transformation and our 20+ years of experience managing complex IT environments provides our customers with the confidence and trust tha...
The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get tailored market studies; and more.
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
As you know, enterprise IT conversation over the past year have often centered upon the open-source Kubernetes container orchestration system. In fact, Kubernetes has emerged as the key technology -- and even primary platform -- of cloud migrations for a wide variety of organizations. Kubernetes is critical to forward-looking enterprises that continue to push their IT infrastructures toward maximum functionality, scalability, and flexibility. As they do so, IT professionals are also embr...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...