November 02, 2009, 1:40 PM — Former Advanced Micro Devices CEO Hector Ruiz stepped down as chairman of GlobalFoundries on Monday, a week after reports emerged of his alleged involvement in an insider-trading scandal.
Ruiz allegedly shared confidential information about AMD with a Wall Street executive in a scheme that netted millions of U.S. dollars in illicit profits, according to a news report in The Wall Street Journal. He allegedly shared confidential information about AMD's reorganization in 2008 with trader Danielle Chiesi of hedge fund New Castle Funds, who then allegedly made trades based on the information.
The U.S. Securities and Exchange Commission on Oct. 16 charged six individuals, including Chiesi and other Wall Street and technology company executives, with involvement in insider trading. The SEC filed a complaint in the U.S. District Court for the Southern District of New York. Ruiz wasn't named in that original filing.
He was AMD's CEO until July of last year, after which he was replaced by Dirk Meyer. Ruiz continued as the company's chairman until he stepped down in March and became the chairman of GlobalFoundries, which is AMD's manufacturing spinoff. AMD earlier this year spun off manufacturing assets to form GlobalFoundries in a joint venture with Advanced Technology Investment Company, which is owned by the Abu Dhabi government.
Ruiz will take a voluntary leave of absence, effective immediately, before resigning from the company in January, GlobalFoundries said. A company spokesman declined comment on whether the leave of absence was tied to the alleged involvement in the insider-trading scheme. Ruiz had submitted his resignation, effective Jan. 4, in September.
He will be replaced by Alan Ross as the chairman of GlobalFoundries. Ross was previously president and CEO of Broadcom.
Ruiz played a key role in AMD's efforts to unload its manufacturing assets to GlobalFoundries as part of a strategy to return the chip company to profitability.
