by Christopher Freeburn | December 20, 2013 10:52 am
On Thursday, Brian Jorgenson, a former Microsoft (MSFT) manager, was charged with 35 counts of insider trading. The government claims that the former Microsoft employee and a partner used insider information from Microsoft to profit from stock trades.
Federal prosecutors have also charged Sean Stokke, a day-trader, in connection with the insider trading. The two men were attempting to raise money to start a hedge fund. Jorgeson, who was a senior manager at Microsoft’s finance unit, obtained confidential information that the two used to make $400,000 through three transactions, the Seattle Times notes.
Prosecutors claim that over a year and a half, Jorgenson passed sensitive information to Stokke, including Microsoft’s investment in Barnes & Noble’s (BKS) Nook unit. Stokke then made trades based on the information that produced financial gains.
Jorgenson has conceded using information gleaned from his time as a Microsoft employee in recent media interviews. He said he was paid $40,000 for providing the insider information. He had been a Microsoft employee for three years, but was dismissed after the trades were discovered.
The former Microsoft employee and Stokke were released on their own recognizance a federal judge. The Securities and Exchange Commission (SEC) is suing them to recover any gains from their alleged insider trading.
Microsoft cooperated with federal law enforcement agencies in the investigation.
MSFT stock rose modestly in Friday morning trading.
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