Ruiz leaves Globalfoundries amid ties to insider-trading scandal

By on November 2, 2009, 4:01 PM
Former AMD CEO Hector Ruiz stepped down as the chairman of Globalfoundries, a manufacturer of integrated circuits that was divested from AMD earlier this year.

Ruiz took a voluntary leave of absence as reports surfaced of his alleged involvement in an insider-trading scandal. He will formally resign on January 4. In the meantime, Alan Ross, the former CEO of Broadcom, will serve as interim chairman until a permanent replacement is selected.

Ruiz purportedly shared details about AMD's reorganization in 2008 with a Wall Street executive, who in turn made trades based on the information. The scheme allegedly produced millions of dollars in illicit profits -- though, Ruiz has not been charged, and prosecutors aren't saying that he profited from insider trading.

It's reported that Globalfoundries has not been approached in the investigation, and is not conducting its own inquiry. Both Jeremy Fielding, who is representing Ruiz, and AMD have declined to comment.

User Comments: 14

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buttus said:

I am personally shocked at Mr. Ruiz's involvement in this insider trading scandal. For me as a long time user and supporter of AMD products I had always believed Mr. Ruiz to be a man of intelligence and integrity. In fact, I always felt that I had taken the "morale highground" in supporting AMD for all these years. These charges have really shaken my image of AMD as a company and as a culture.

Xclusiveitalian Xclusiveitalian said:

I like how he can just step down and everything is ok...I say if he is found to have involvment than he should lose all assets if he is found guilty, and serve jail time. This kinda stuff happens all to often among CEO's.

InsaneVr6 said:

Can't say I am surprised. When people get that far up in a company or reach CEO status they somehow think they are untouchable.

If everything happens as it should, if he is found to be involved he will be punished for it, but he most likely has the money to defend himself if he needs to. Money bends the rules.

elroacho72 said:

AMD is still a good company and I think a little new blood will be good for all of us in the long run. Well maybe not Mr. Ruiz. We don't know what really happened, he could be innocent. What do you think. He could have confided in someone who then burned him good.

JieMan JieMan said:

Well you know the old saying "Power corrupts, and absolute power corrupts absolutely" .

You can't really blame the guy, he just wanted some extra cash. Like martha Stewart. Just put him in jail for a year, slap an ankle bracelet around him for home arrest for six months after and then release him back in the wild.

I would hope Mr. Ruiz acted on his own behalf and interests and the companies in this scandal, thats the last thing AMD needed right now.

Hopefully this will bring some change for the better.

Shalimar said:

ahh sad and yet not a big shock. Based on the info so far it would appear that he is not involved as much as he may have leaked info inappropriately. Either way it's not a good thing and I'm sure the rest of the AMD staff will investigate properly.

PUTALE said:

big no no from mr. ruiz for his insider trading. However, I think he did a very nice job turning amd around anf for that he should be applauded.

Puiu Puiu said:

I just want to know if he actually benefited from this or not. Who knows, he might be innocent.

ET3D, TechSpot Paladin, said:

Puiu, what a strange attitude. Don't you know that people are considered guilty until proven innocent, and then they're considered to have escaped justice?

freedomthinker said:

Oh, how the mighty fall . This kind of a shocker , i always supported him and his work . Too bad though :/

swilllx2p said:

I'm a big fan of AMD and this doesn't really change that in the least. More then likely if he's guilty I wouldn't see it as an act of AMD the company, I'd just see it as an act of him. If he is guilty i'm glad it came out and it'll be good to get someone else in his place since AMD does not need corrupt CEOs right now or ever really.

Eddie_42 Eddie_42 said:

Why wait until January?? Annual bonus and profit sharing?

Guest said:

"Like Martha Stewart..." Martha Stewart was involved in no insider trading - she wasn't charged with insider trading - she is of no relevance to Ruiz insider charges. Martha Stewart made a legal personal stock sale and was screwed by grossly incompetent legal representation. .

Anasazi said:

Somebody Ruiz ticked off later ratted on him to the Feds.

Hope he has a deep war chest, as this will be costly to him and his cohorts.

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