Intel's India-born MD spared jail time in insider trading

Intel Corp's India-born former MD Rajiv Goel, who was charged with giving inside corporate information to Raj Rajaratnam, has been spared jail time as he turned government witness and helped nail the Galleon founder in America's biggest insider trading scandal.

Goel, 54, apologised and said he was "deeply ashamed" before he was sentenced by US District Judge Barbara Jones in federal court here yesterday.

The judge sentenced him to two years' probation and fined the California resident USD 10,000 and also ordered him to forfeit USD 266,000.

Jones said Goel "showed good sense in deciding to cooperate" with the government.
Goel is the second Indian-American, charged with insider trading, to have escaped jail time after becoming a key government witness against Rajaratnam.

The other government witness India-born former McKinsey executive Anil Kumar was also spared jail time and was sentenced in July to only two years' probation for his cooperation in Rajaratnam's and his mentor at Mckinsey Rajat Gupta's trial.

Goel was arrested with Rajaratnam in October 2009 and had pleaded guilty in 2010 to conspiracy and securities fraud.

He had agreed to cooperate with the government and provided "substantial assistance" as a witness against Rajaratnam in his trial last year.
Goel had faced up to 25 years in prison.

At the hearing he said, "I had a serious lapse of judgement and good sense".
Mumbai-born Goel had met Rajaratnam in 1983 at the Wharton Business School.

He had served as managing director in Intel's treasury department and had provided confidential information to Rajaratnam about the company's earnings and a billion dollar transaction in 2008.