This past March, Advanced Micro Devices, Inc. (NYSE:AMD) hired Bruce Claflin to replace Hector Ruiz. It is a good thing that Ruiz was replaced back then because the former AMD Chairman is now involved with a controversial case.

Supposedly Ruiz is being investigated for providing insider information to the Galleon Group’s Danielle Chiesi. Chiesi was arrested earlier this month for generating over $25 million in illegal profits. Ruiz had become chairman of GlobalFoundries Inc., an AMD spin-off, after being replaced by Claflin.

Galleon Group portfolio manager and founder Raj Rajaratnam was also arrested for receiving insider information. Galleon Group is a hedge fund based in New York. Rajaratnam said that he plans to fight the insider-trading charges.