Expedia Techie Gets 15 Months for Insider Trading Scam

SEATTLE, WA – Jonathan Ly, 28, of San Francisco, is headed to federal prison after being sentenced to 15 months for a brazen insider trading scheme exploiting his position at Expedia. U.S. District Judge John C. Coughenour also imposed three years of supervised release, bringing an end to a case that exposed a calculated betrayal of trust.

Ly, a former Senior IT Technician at Expedia’s Hotwire.com subsidiary in San Francisco, wasn’t just fixing computers. Between 2013 and 2015, he used his network privileges to remotely access the email accounts and documents of top Expedia executives – specifically the Chief Financial Officer and the Head of Investor Relations. This wasn’t a momentary lapse; it was a sustained effort to pilfer non-public information and use it to manipulate Expedia stock options for personal gain.

“This was not a one-time lapse in judgement – this defendant used his technology skills to repeatedly invade the email accounts of Expedia executives so that he could enrich himself at the expense of others,” stated U.S. Attorney Annette L. Hayes. The scheme netted Ly over $331,000 in illegal profits. But his greed didn’t stop when he left Expedia in 2015. He continued the intrusions, even after taking a new job, and attempted to cover his tracks by making it appear as though other employees were responsible.

Expedia deserves credit for quickly recognizing the breach and immediately contacting the FBI. Their swift action and internal forensic investigation were crucial in tracing the intrusions back to Ly. The company spent $81,592 investigating the incident – a sum Ly will be required to repay as part of his plea agreement. The FBI’s investigation revealed Ly had retained an Expedia laptop and continued to exploit his prior access even after his employment ended.

This case isn’t just about a prison sentence. The Securities and Exchange Commission is pursuing a separate action against Ly, demanding he forfeit the full $331,000+ in ill-gotten gains. It’s a stark reminder that exploiting privileged access for financial gain will be met with serious consequences. The prosecution was handled by Assistant United States Attorney Katheryn Kim Frierson.

The case highlights the increasing threat of insider threats within corporations. While companies invest heavily in external security, vulnerabilities often lie within their own ranks. Expedia’s proactive response and cooperation with law enforcement prevented further damage and brought a tech-savvy criminal to justice. The incident serves as a cautionary tale for all organizations: monitor internal access closely and act swiftly when irregularities are detected.