A relative of an IBM worker has pleaded guilty to making insider trades in the stock of Lotus Development before the software company was acquired by IBM in 1995.

Robert Cassano (36), told a federal judge in New York that his tip came from a relative at IBM who was supposed to keep the company's takeover plan confidential.

The leak allowed six people to make a total of $200,000 in illegal trading profits on Lotus securities, US federal prosecutors charged. The IBM worker learned about the Lotus plan from a co-worker, prosecutors alleged in court documents. IBM officials would not identify the workers.

Prosecutors also charged a friend of Cassano's, Gerad Mazzone, with illegally trading in Lotus securities after Cassano told him about the impending $3.3 billion takeover in Spring 1995. The two companies announced the purchase June 5th, 1995.