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.

 

Recommended Reading:

Comment  | 
Print  | 
More Insights
Comments
Threaded  |  Newest First  |  Oldest First
COVID-19: Latest Security News & Commentary
Dark Reading Staff 8/10/2020
Researcher Finds New Office Macro Attacks for MacOS
Curtis Franklin Jr., Senior Editor at Dark Reading,  8/7/2020
Exploiting Google Cloud Platform With Ease
Dark Reading Staff 8/6/2020
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win an Amazon Gift Card! Click Here
Latest Comment: It's a technique known as breaking out of the sandbox kids.
Current Issue
Special Report: Computing's New Normal, a Dark Reading Perspective
This special report examines how IT security organizations have adapted to the "new normal" of computing and what the long-term effects will be. Read it and get a unique set of perspectives on issues ranging from new threats & vulnerabilities as a result of remote working to how enterprise security strategy will be affected long term.
Flash Poll
The Changing Face of Threat Intelligence
The Changing Face of Threat Intelligence
This special report takes a look at how enterprises are using threat intelligence, as well as emerging best practices for integrating threat intel into security operations and incident response. Download it today!
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-24348
PUBLISHED: 2020-08-13
njs through 0.4.3, used in NGINX, has an out-of-bounds read in njs_json_stringify_iterator in njs_json.c.
CVE-2020-24349
PUBLISHED: 2020-08-13
njs through 0.4.3, used in NGINX, allows control-flow hijack in njs_value_property in njs_value.c. NOTE: the vendor considers the issue to be "fluff" in the NGINX use case because there is no remote attack surface.
CVE-2020-7360
PUBLISHED: 2020-08-13
An Uncontrolled Search Path Element (CWE-427) vulnerability in SmartControl version 4.3.15 and versions released before April 15, 2020 may allow an authenticated user to escalate privileges by placing a specially crafted DLL file in the search path. This issue was fixed in version 1.0.7, which was r...
CVE-2020-24342
PUBLISHED: 2020-08-13
Lua through 5.4.0 allows a stack redzone cross in luaO_pushvfstring because a protection mechanism wrongly calls luaD_callnoyield twice in a row.
CVE-2020-24343
PUBLISHED: 2020-08-13
Artifex MuJS through 1.0.7 has a use-after-free in jsrun.c because of unconditional marking in jsgc.c.