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Former IBM exec Robert Moffat isn’t seeking plea deal, lawyer says

Danielle Chiesi exits Manhattan federal court, Monday, Dec. 21, 2009, in New York. Chiesi and Galleon group founder Raj Rajaratnam were charged with seventeen counts including conspiracy and securities fraud crimes, stemming from their alleged involvement in the largest hedge fund insider trading case in history. (AP Photo/ Louis Lanzano)

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Note: The Skinny blog is written by Rick Smith, editor and co-founder of Local Tech Wire and business editor of WRAL.com.

RESEARCH TRIANGLE PARK, N.C. – You may have read that former IBM executive Robert Moffat is in negotiations for a plea deal as part of the massive hedge fund insider case that cost him a chance to succeed IBM (NYSE: IBM) top executive Sam Palmisano. Not so, according to Moffat’s attorney.

After news broke Friday that the U.S. attorneys were in talks for a plea deal with one of the principals in the case, some media also said Moffat was seeking a deal. The case about a possible indictment has been extended into February.

However, Kerry Lawrence, who represents Moffat, pointed out to Bloomberg news:

“We’re not engaging in plea discussions and are hopeful to avoid an indictment.”

That statement reflects earlier public insistence by Moffat’s team that he is not guilty. He has been arrested but has not been indicted. However, the case that includes allegations he provided an indicted defendant with insider information about IBM and other information cost Moffat his right-hand position to Palmisano plus a seat on the advisory board at Morrisville-based Lenovo. Moffat was actively involved in IBM’s PC operations which were sold to Lenovo in 2005.

Bloomberg noted in its report:

“Moffat isn’t in plea talks and his lawyers are trying to get prosecutors to reconsider the charges against him.”

Here’s how the most recent court filing about Moffat reads:

“We are in the process of finalizing a plea agreement with defendant [Mark] Kurland [co-founder of New Castle Funds] and are engaged in ongoing discussions with counsel for defendant Moffat.”

At New Castle, Kurland supervised Danielle Chiesi, who is alleged to have gotten information from Moffit and relayed it to billionaire Raj Rajaratnam as well as Kurland.

Chiesi’s attorneys told Bloomberg that the Kurland talks had “no impact on our case. We are continuing to vigorously maintain our innocence, and plan to fight this all the way through to the end.”

The filing also included some interesting background about the Moffat case. He was required to:

• “Execute” a $2 million personal recognizance bond
• Bond had to be co-signed ‘by two financially responsible persons”
• He also needed to secure the bond “by property with equity of at least $700,000
• He had to “limit his travel” to the U.S.
• He had to surrender “all travel documents”

For the most recent filing, click here.

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The Skinny

WRAL Local Tech Wire Publisher and Editor Rick Smith dishes out tidbits from the local technology sector. Read more articles…