Hector Ruiz quits Globalfoundries following Galleon allegations

4 November 2009

Hector Ruiz, the former chief executive officer of Advanced Micro Devices (AMD), has quit his job as chairman of Globalfoundries one week after being implicated in the Galleon insider trading scam.

The scandal hit headlines around the world last month after Raj Rajaratnam, founder of the Galleon hedge fund, and five of his associates were arrested on charges relating to what has been described as the biggest insider trading scam in history.

Last week, media reports linked Mr Ruiz to the scandal, claiming that he had passed on secret information about a deal between AMD and the Abu Dhabi government that led to the foundation of technology manufacturer Globalfoundries.

Following publication of the allegations, Globalfoundries has announced Mr Ruiz will take an immediate leave of absence before resigning from his position at the company in January 2010.

A company spokesman added that Mr Ruiz was not part of any internal inquiry into the allegations and Globalfoundries had not been contacted by government authorities in relation to the Galleon investigation.

Board member Alan Ross will serve as interim chairman at the company until a permanent replacement for Mr Ruiz is found.

He is far from the only high-profile casualty in the case, with IBM executive Robert Moffat choosing to take early retirement following his arrest.

The former vice-president for technology had been touted as a potential future chief executive officer at the company, but his arrest has prompted him to leave the company and focus on defending himself in court.

Mr Moffat has been accused of passing on information about IBM and Sun Microsystems, which IBM was in talks to buy at the time the reported conversations took place.

Along with his co-defendants, Mr Moffat denies all charges.

His position at IBM has been filled by Rod Adkins, who had previously been in charge of systems development at the organization.

By Claire Archer

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