Benjamin J. Wylam, Securities Fraud, California 2017

San Francisco – A local man is facing serious charges after allegedly engaging in insider trading. Benjamin J. Wylam, 42, of San Jose, has been charged with securities fraud in connection with the illegal use of insider information obtained from Sunnyvale-based technology company Infinera Corporation.

According to the charges, Wylam used the messaging service WhatsApp, among other means, to receive confidential information from another individual about Infinera’s financial performance and financial projections. Despite knowing that the information had been obtained through deceptive or improper means, Wylam allegedly used the information for his own use while executing securities transactions in Infinera stock.

The charges were filed in connection with a separate criminal information against Nathaniel A. Brown, 49, of San Jose, who was also accused of securities fraud. Brown, a former Senior Revenue Manager employed in Infinera’s finance organization from 2011 to 2017, allegedly used deceptive or improper means to collect confidential information related to Infinera’s financial performance and financial projections.

In related proceedings, Naveen Sood, 49, of Campbell, Calif., pleaded guilty to one count of securities fraud for engaging in transactions in Infinera securities after receiving material nonpublic information about the company. Sood admitted that he socialized with two individuals, one of whom he knew regularly had access to confidential information about Infinera’s quarterly financial results and financial prospects.

The plea agreement, which was accepted by the Honorable Edward M. Chen on March 31, 2021, details how Sood used the confidential information to execute trades in Infinera stock, resulting in a profit of $36,455. The agreement also includes a forfeiture allegation seeking a money judgment of $999,000, alleging that the amount constitutes or is derived from proceeds that Wylam obtained as a result of the criminal violation.

The charges against Wylam and Brown are a reminder of the serious consequences of insider trading. Those who engage in such activities can face significant fines and prison time, as well as damage to their reputation and livelihood.

Defendant: Benjamin J. Wylam

Criminal Charges: Securities Fraud

City and State: San Jose, California

Crime Date: April 2016 – November 2017

Sentence: Currently pending

Fine: $999,000 (forfeiture allegation)

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