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IBM Fires Exec Implicated in Insider Trading Scandal

IBM isn't saying much, not even that Moffat was fired, merely that he is no longer an IBM employee

IBM has cut its ties with Robert Moffat, the senior VP who ran its server, storage and chips businesses and was arrested two weeks ago for allegedly whispering insider information on IBM and Sun financial results as well as AMD's reorganization plans to hedge funds that traded on the material information.

IBM isn't saying much, not even that Moffat was fired, merely that he is no longer an IBM employee.

Three days after Moffat was arrested on October 19 on charges of conspiracy to commit securities fraud IBM put him on administrative leave and replaced him temporarily with Rod Aktins, whose accession as IBM's highest-ranking African-American executive is now confirmed.

It could have taken IBM two weeks just to talk with Moffat and his lawyer let alone do its own internal investigation.

His termination does not necessarily relieve IBM and its insurance company of liability. The company is however clearly trying to distance itself from the affair.

The New York Times reported that IBM posted a notice on its internal web site this morning simply saying that "Bob Moffat, who had been placed on a leave of absence as a result of a U.S. federal investigation into his personal activities, is no longer an employee of IBM." It won't say anything else.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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