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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

IBM Corporation

SEC v. Galleon Management LP, et al. (Insider Trading)

Date: 10/16/2009 (Date of Filing)

Misconduct Type: Securities

Enforcement Agency: SEC

Contracting Party: None

Court Type: Civil

Amount: $0

Disposition: Settlement

Synopsis: The Securities and Exchange Commission charged Raj Rajaratnam and his hedge fund advisory firm, Galleon Management LP, with engaging in an insider trading scheme that generated more than $25 million in illicit gains. The SEC alleged that Rajaratnam obtained insider tips and confidential information from friends and business associates about corporate earnings or takeover activity at several companies, which he then used to illegally trade on behalf of Galleon. The SEC also charged six others, including IBM senior vice president Robert Moffat, who allegedly provided inside information about Sun Microsystems. All of the defendants were charged with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In March 2010, Moffat pleaded guilty to two criminal counts in the matter (see related IBM instance, “U.S. v. Moffat (Insider Trading)”). In February 2011, Moffat reached a settlement with the SEC, which permanently barred him from acting as an officer or director of a publicly traded company.