NEW YORK - Rajiv Goel, a former managing director in Intel Corp.’s treasury group, pleaded guilty in the Galleon Group LLC insider trading case and will cooperate with the government’s prosecution of Galleon founder Raj Rajaratnam.
Goel, 51, pleaded guilty to conspiracy and securities fraud in federal court in Manhattan yesterday and implicated Rajaratnam, whom Goel said he’d known for 25 years, in two insider trades. Goel told Judge Alvin Hellerstein he gave Rajaratnam inside information on Intel earnings and the company’s plan to invest in a publicly traded company in 2007 and 2008.
“I gave Rajaratnam the information because of my friendship for him,’’ Goel said. “I cannot express how sorry I am. I come here to do the right thing.’’
Goel becomes the ninth person to admit wrongdoing and the third among them to incriminate Rajaratnam. The top penalty for insider trading is 20 years in prison, prosecutors said in court yesterday. Goel, who is no longer employed by Intel, was arrested Oct. 16 for passing tips to Rajaratnam about a firm that Santa Clara, Calif.-based Intel invested in. Rajaratnam has been indicted for using confidential tips to earn millions in illegal stock trades.
