Hector Ruiz, the most prominent executive tied to the Galleon Group LLC insider-trading case, is stepping down as chairman of Globalfoundries Inc., a spinoff of Advanced Micro Devices Inc. (NYSE: AMD), according to Bloomberg.
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Ruiz, 63, will be on leave of absence before resigning as of Jan. 4, Globalfoundries said Monday in a statement. Ruiz is the AMD executive government prosecutors say provided nonpublic information to Danielle Chiesi, alleged to be part of the Galleon insider-trading ring, a person familiar with the matter said last week.
Ruiz, who stepped down as AMD’s chief executive officer last year, was instrumental in the company’s plan to spin off its manufacturing plants, becoming chairman of Globalfoundries, the new company created from the deal. Chiesi allegedly traded on information about that transaction.
Prosecutors released parts of recorded conversations between Chiesi, a former Bear Stearns Asset Management official, and an AMD executive, in which they allegedly discussed the timing of the spinoff of AMD’s plants. The unnamed executive told Chiesi about the transaction in September 2008, ahead of the announcement of the deal, according to court documents.
Ruiz offered his resignation in September, Globalfoundries said. Alan E. Ross will replace Ruiz, serving as interim chairman until a permanent replacement is chosen by the board.
Ruiz is at least the second technology executive implicated in the insider-trading case that has left his post. International Business Machines Corp. (NYSE: IBM) last week replaced Senior Vice President Robert Moffat, who is accused by prosecutors of leaking information on the transaction that created Globalfoundries to Chiesi.
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