| NEW YORK, Sept 24
NEW YORK, Sept 24 A former Intel Corp
executive, whose trial testimony helped convict hedge fund titan
Raj Rajaratnam, avoided prison time on Monday for his role in
the biggest insider-trading prosecution of a generation.
Rajiv Goel is the third former friend and business
associate, who testified against Rajaratnam at his 2011
Manhattan federal court trial, to be handed a sentence of
probation. Goel is among scores of fund managers, traders,
lawyers, executives and consultants caught in a U.S. government
crackdown on Wall Street insider trading in the past four years.
In sentencing Goel, 54, to two years probation, U.S.
District Judge Barbara Jones said his cooperation with the
government "did go beyond" ordinary assistance, which his
lawyers and prosecutors described in their pre-sentencing
briefs. Jones fined Goel $10,000 and ordered him to forfeit
Goel, who has not worked since losing his job as treasury
group manager with chipmaker Intel following his October 2009
arrest, pleaded guilty in February 2010 to being part of
Rajaratnam's network of insiders feeding him corporate secrets.
The charges of securities fraud and conspiracy carried a
maximum prison term of 25 years. Galleon Group hedge fund
founder Rajaratnam, who was convicted of 14 charges of
securities fraud and conspiracy by a jury, is serving an 11-year
Rajaratnam's appeal of secretly recorded telephone calls
used by the FBI to gather evidence is scheduled to be heard on
Goel told the sentencing judge that in helping Rajaratnam,
"I had a serious lapse of judgment and good sense and I deeply
apologize...I hope that I am given another chance to repair the
harm that I have caused."
His lawyer, David Zornow, in requesting a non-custodial
sentence, described Rajaratnam as a "master manipulator" and a
"clever seducer" of his friends.
At Rajaratnam's trial, Goel told the jury that they met at
Wharton School of the University of Pennsylvania in the early
1980s. In 2007 and 2008, Goel gave Rajaratnam confidential
information about Intel's business.
U.S. prosecutor Reed Brodsky told the judge on Monday that
Goel's cooperation and testimony were essential "in a very
significant prosecution for the government." Brodsky said Goel's
assistance was relevant in six of the 14 charges against
Two other former associates of Rajaratnam were also
sentenced to two years probation following their trial
testimony. They were Anil Kumar, a former McKinsey & Co
consultant who also met Rajaratnam at Wharton, and former
Galleon money manager Adam Smith.
The case is: USA v Rajiv Goel in U.S. District Court for the
Southern District of New York, No. 10-90