Court records have shown that former IBM Senior Vice President Robert Moffat Jr. pleaded guilty to two counts of insider trading Monday.

Moffat provided confidential information to Danielle Chiesi, a friend working at the equity hedge fund New Castle Partners, which is affiliated with JP Morgan Chase & Co, the Department of Justice have said.

The insider trading occurred in August and September 2008, with Moffat passing on information concerning International Business Machine and Lenovo Group Ltd.'s third-quarter performances before they were made public.

Confidential information concerning an Advanced Micro Devices Inc. decision to spin off its manufacturing division was also passed on by Moffat, who was a member of Lenovo's board of directors.

Moffat was privy to the AMD information, as AMD needed a license to use IBM technology to proceed with the spin-off.

The Justice Department further said that Moffat faces a maximum five-year sentence on a conspiracy charge and a maximum 20-year sentence on a securities fraud charge. (With Inputs from Agencies)