Microsoft Exec & Trader Nabbed in Insider Scheme

SEATTLE, WA – A senior Microsoft manager and a Seattle day trader are facing federal charges today in a brazen insider trading scheme that allegedly netted them hundreds of thousands of dollars. BRIAN JORGENSON, 32, of Lynnwood, Washington, and SEAN STOKKE, 28, of Seattle, were charged with 35 counts of insider trading in U.S. District Court. The pair allegedly exploited confidential information from Microsoft’s internal workings to manipulate stock options, lining their pockets at the expense of legitimate investors.

U.S. Attorney Jenny A. Durkan didn’t mince words, stating, “For every stock market winner, there is a loser, and trading on confidential inside information is a cheaters way of gaining at the expense of others.” She vowed a vigorous prosecution, adding, “This conduct hurts companies, hurts individuals, and shakes faith in our financial markets.” The case highlights the ever-present threat of corruption within the high-stakes world of tech and finance.

The complaint details three specific instances where JORGENSON, leveraging his position as a Senior Manager in Microsoft’s Treasury Group, passed non-public information to STOKKE, a former colleague from an asset management firm. In April 2012, JORGENSON tipped off STOKKE about Microsoft’s impending investment in Barnes & Noble. STOKKE immediately began accumulating options, raking in over $184,000 when the stock jumped 49% after the public announcement. The pair allegedly cemented their illicit partnership with envelopes of cash, roughly $10,000 at a time, changing hands.

The scheme continued into 2013. JORGENSON, aware of looming negative earnings reports, alerted STOKKE, who then bet against Microsoft by purchasing “put” options. When the stock predictably plummeted, they profited by more than $195,000. The following year, in October 2013, JORGENSON again provided advance notice of positive earnings, leading to another profitable maneuver involving a technology sector fund and a nearly $13,000 payout for the duo. Phone records meticulously documented the frequent communication between the two men as the trades unfolded.

FBI Special Agent-in-Charge Laura M. Laughlin emphasized the prevalence of insider trading in a city like Seattle, teeming with publicly traded companies. “The high density of publicly traded companies in Seattle affords a large number of people access to insider information that can unfairly benefit their investment decisions,” she said. “While most employees will never exploit that knowledge, our FBI office is particularly attentive to uncovering when and where this type of fraud occurs.” She warned that despite increasingly sophisticated evasion tactics, these schemes invariably unravel.

JORGENSON is no longer employed by Microsoft. Both men are scheduled to appear in U.S. District Court in Seattle at 3:00 PM today to face the music. The Grimy Times will continue to follow this case and bring you the latest updates as they develop. This isn’t just about money; it’s about eroding trust in the very foundation of our financial system.”