A former top executive at a California-based technology company has been found guilty of participating in an insider trading scheme that reaped over $27 million in unlawful gains.
David Riley, the former Chief Information Officer of Foundry Networks, Inc., was convicted of one count of conspiracy to commit securities fraud and two counts of securities fraud in Manhattan federal court.
Riley had access to monthly and quarterly financial reporting, along with other sensitive, nonpublic information, while working at Foundry. He provided this information to Matthew Teeple, a former analyst for San Francisco-based hedge fund Artis Capital Management, L.P.
Teeple, who had previously pleaded guilty to related charges, passed the inside information on to others, including others at Artis. From the inside information Teeple provided about Foundry, Artis ultimately reaped gains of over $27 million in 2008.
The jury found Riley guilty on November 20, 2014. He is scheduled to be sentenced on February 6, 2015.
Riley, 48, of San Jose, California, faces a maximum sentence of five years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense on the conspiracy count. He also faces up to 20 years in prison and a fine of $5 million or twice the gross gain or loss from the offense on each of the two securities fraud counts.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force, which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.
Related Federal Cases
- Woojae Jung, Insider Trading, New York 2023 · North Carolina
- Mark Wayne Ramsey, Insider Trading, California 2024 · Washington
- Wall Street Firms, Financial Malfeasance, New York NY, 2023 · Florida
- Kenneth Thom, Investment Adviser Fraud, New York NY, 2026 · Ohio
- Letitia James, Environmental Law Violation, New York 2024 · District of Columbia
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News