Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Vulnerabilities / Threats

Fallen IBM Exec Merely Sought 'Business Clarity'

Bob Moffat says he was motivated by a lust for information, not money or sex, when he struck up affair with alleged co-conspirator.

Former IBM senior VP Bob Moffat said his affair with alleged inside trader Danielle Chiesi was motivated not so much by sex as it was his desire to know "what was going on in the business world."

Moffat, in a bizarre admission to Fortune magazine, said the tech industry pillow talk he exchanged with Chiesi was the main motivation behind their romantic liaisons.

"Everyone wants to make this about sex," Moffat said in an interview published by Fortune on Tuesday. "Danielle had an extensive network of business people. And she added clarity about what was going on in the business world," Moffat said.

"I know in my heart what this relationship was about: clarity in the business environment," he added.

Moffat earlier this year pled guilty to one count of conspiracy and one count of securities fraud. He admitted feeding confidential IBM information to Chiesi. Prosecutors allege that Chiesi in turn gave the information to her bosses at investment firm New Castle Funds. Moffat has said he did not profit financially from the arrangement.

Among other things, Moffat was caught on tape informing Chiesi of AMD's plans to spin off its chip manufacturing arm into a separate company, to be called Foundry, which would be partly financed by investors from Abu Dhabi.

Moffat, who ran IBM's $19 billion Systems and Technology group and was once seen as a possible successor to CEO Sam Palmisano, is scheduled to be sentenced later this year. Reports suggest he's likely to spend about six months in jail.

Chiesi has pled not guilty to securities charges. Moffat, Chiesi, and several alleged accomplices from the tech and investment industries were arrested last October.

Also charged with a variety of securities-related crimes were Raj Rajaratnam, of Galleon Management, Mark Kurland, of New Castle Funds, Anil Kumar, of consulting firm McKinsey, and Intel Strategic Investments director Rajiv Goel.

Authorities fingered Galleon's Rajaratnam as mastermind of the ring.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
COVID-19: Latest Security News & Commentary
Dark Reading Staff 5/28/2020
The Problem with Artificial Intelligence in Security
Dr. Leila Powell, Lead Security Data Scientist, Panaseer,  5/26/2020
10 iOS Security Tips to Lock Down Your iPhone
Kelly Sheridan, Staff Editor, Dark Reading,  5/22/2020
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Current Issue
How Cybersecurity Incident Response Programs Work (and Why Some Don't)
This Tech Digest takes a look at the vital role cybersecurity incident response (IR) plays in managing cyber-risk within organizations. Download the Tech Digest today to find out how well-planned IR programs can detect intrusions, contain breaches, and help an organization restore normal operations.
Flash Poll
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-13173
PUBLISHED: 2020-05-28
Initialization of the pcoip_credential_provider in Teradici PCoIP Standard Agent for Windows and PCoIP Graphics Agent for Windows versions 19.11.1 and earlier creates an insecure named pipe, which allows an attacker to intercept sensitive information or possibly elevate privileges via pre-installing...
CVE-2019-6342
PUBLISHED: 2020-05-28
An access bypass vulnerability exists when the experimental Workspaces module in Drupal 8 core is enabled. This can be mitigated by disabling the Workspaces module. It does not affect any release other than Drupal 8.7.4.
CVE-2020-11082
PUBLISHED: 2020-05-28
In Kaminari before 1.2.1, there is a vulnerability that would allow an attacker to inject arbitrary code into pages with pagination links. This has been fixed in 1.2.1.
CVE-2020-5357
PUBLISHED: 2020-05-28
Dell Dock Firmware Update Utilities for Dell Client Consumer and Commercial docking stations contain an Arbitrary File Overwrite vulnerability. The vulnerability is limited to the Dell Dock Firmware Update Utilities during the time window while being executed by an administrator. During this time wi...
CVE-2020-13660
PUBLISHED: 2020-05-28
CMS Made Simple through 2.2.14 allows XSS via a crafted File Picker profile name.