Tuesday, March 22, 2011

A former Intel executive who has pleaded guilty to leaking company secrets has begun testifying in New York City at a hedge fund manager's insider trading trial.

Prosecutors say Rajiv Goel and the defendant, Raj Rajaratnam (rah-juh-RUHT'-nuhm), were caught on a wiretap discussing a closed-door meeting in 2008 of the Intel board of directors. Goel revealed that the board agreed to invest up to $1 billion in a joint wireless venture by Sprint and Clearwire.

Goel said early in his testimony Tuesday that he violated his obligation to keep secrets by sharing information with Rajaratnam.

The 53-year-old Rajaratnam has pleaded not guilty to charges he made millions trading illegally on secrets.

Nineteen defendants charged in a federal crackdown on insider trading have pleaded guilty. Some are cooperating, including Goel.


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