Though Wall Street’s obsession with the tangled web that is the Galleon insider trading case has abated a bit, the defendants are still working their way through the system.Robert Moffat, a former senior VP at IBM, is reportedly going to waive his right to an indictment and has agreed to allow the U.S. Attorney’s office to proceed under what is called a criminal information, Chad Bray of The Wall Street Journal wrote.
As the article noted, this manoeuvre sometimes indicates that the defendant plans to plead guilty. Moffat’s lawyer confirmed to the WSJ that his client intends to waive the right to the indictment but did not comment on any potential plea. A hearing is scheduled for Monday.
Moffat is accused of providing insider information relating to AMD to former New Castle consultant Danielle Chiesi, who then passed along the information to Raj Rajaratnam. Rajaratnam is the founder of Galleon and, since his October arrest, the face of this case.
Meanwhile, lawyers for Rajaratnam and Chiesi are planning for upcoming civil and criminal trials. Rajaratnam and Chiesi have requested separate trials, which, if granted, is only one of the timing issues the parties are facing.
Judge Jed Rakoff, overseeing the civil trial, wants it to proceed prior to the criminal trial — an unusual occurrence in these matters. Also at issue is turning over wiretapped conversations to the SEC; Rakoff has ruled that the wiretapped conversations must be turned over, but the defendants assert they should not have to do so until a judge rules on their request to suppress the wiretaps in the criminal trial.
Currently the wiretap hearing is set for June 9, the criminal trial for both Rajaratnam and Chiesi for October 25.
Chad Bray’s report, which includes a full update on the case and additional background on the allegations against Moffat, is here.
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