IBM Top Official Put on Leave after Alleged Insider-Trading Scheme

Robert Moffat, the senior vice president and head of the International Business Machines Corp’s (IBM) systems and technology group, was placed under forced leave of absence after being arrested over accusations of insider-trading scheme.

In a statement, IBM Spokesperson Edward Barbini said that Moffat was place on leave of absence after allegedly pulling off the largest hedge fund insider-trading scheme in history.

“Pending the investigation being conducted by the United States Federal over the allegations of personal activities, Mr. Moffat, the head of systems and technology group of IBM, has been place on temporary leave of absence and is no longer serving the company,” Barbini said in the statement.

According to acquired complaint documents, Moffat has been passing information about the IBM’s quarterly results, ahead of the official tally. Likewise, he also allegedly passed on information about the operation results of Sun Microsystems (JAVA O) while IBM was seeking other possible acquisitions.

Moffat, who has been with IBM since 1978, was one of the most viable candidate to replace outgoing chief executive Sam Palmisano.

According to investigators, Moffat was the only one of the IBM officials conducting due diligence on Sun Microsystems. He was also charged of insider-trading for giving away information about Advanced Micro Devices Inc (AMD.N).
The Federal Bureau of Investigation said that he was able to acquire the information during negotiations with the company.

Moffat’s lawyers, on the other hand, said that their client will plead “not guilty” to the accusations once the hearing begins. He was temporarily release after posting bail.