He was simply helping out a friend.
That was the excuse that former highflying IBM exec Bob Moffat served up yesterday as he explained his role in passing confidential information to hedge fund consultant Danielle Chiesi, one of two people prosecutors see at the center of the Galleon Group insider-trading case.
Moffat — who was once seen as a possible successor to IBM CEO Sam Palmisano — said he violated securities laws because he wanted to help Chiesi, an employee of New York hedge fund New Castle, whom he described as a “friend.” Chiesi has pleaded not guilty to insider-trading charges.
Unlike others who have admitted wrongdoing in the case, Moffat claims he didn’t receive a penny for his crimes, which included giving Chiesi information about computer maker Lenovo’s earnings, where he served on the board of directors.
Moffat also gave her confidential info about sales at IBM and a possible restructuring at Advanced Micro Devices.
By way of explanation, Moffat only said, “I knew that the information I provided would be helpful to her [Chiesi] in performing her job.”
After the short hearing, Moffat stood outside the courthouse crying in light rain as photographers snapped photos of him.
Moffat, the 11th person to plead guilty in the far-reaching case, made his teary-eyed plea in a quivering voice before Manhattan federal Magistrate Frank Maas.
He faces a maximum prison term of six months and is not cooperating with prosecutors in going after Chiesi or Galleon founder Raj Rajaratnam, who has also been charged in the scandal.