Jail and a Fine for Ex-IBM Exec in Hedge Fund Probe

Mike Taylor — Mon, 13 Sep 2010 17:25:17 -0400

It's half a year in jail and $50,000 in fines for former IBM senior exec Robert Moffat, who in March pleaded guilty to leaking inside information to New Castle Funds consultant Danielle Chiesi. As Bloomberg reports, U.S. District Judge Deborah Batts did not mince words in discussing Moffat's sentence: "Why the defendant betrayed the only employer he has had for his entire career has not been addressed. His astounding breach of his fiduciary duty to his employer is why he is here."

Moffat said that he had an "intimate relationship" with Chiesi. To add some color, Reuters characterizes the connection as an extra-marital affair. Moffat's prison term starts next year following a request by his lawyers that he be allowed to attend his child's college graduation. He isn't cooperating with the U.S. investigation.

Previously: The Wall Street Ex-Wives Club

Observer » Jail and a Fine for Ex-IBM Exec in Hedge Fund Probe

Jail and a Fine for Ex-IBM Exec in Hedge Fund Probe