Former Microsoft Senior Manager Brian Jorgenson, 32, of Lynnwood, Washington, has been sentenced to two years in prison and three years of supervised release for insider trading, U.S. Attorney Jenny A. Durkan announced. Jorgenson pleaded guilty earlier this year, admitting to recruiting a former co-worker to make stock trades based on confidential information.
Jorgenson’s codefendant, Sean Stokke, 28, of Seattle, was sentenced last month to 18 months in prison. During the sentencing hearing, Chief Judge Marsha J. Pechman emphasized the importance of trust in financial markets, stating that those caught cheating must be held accountable.
According to case records, Jorgenson and Stokke profited from three instances of insider trading: Microsoft’s investment in Barnes & Noble, Microsoft’s failure to meet earnings estimates for Q4 2013, and Microsoft’s increased first quarter earnings in fiscal 2014. The men exchanged envelopes containing cash totaling approximately $10,000 increments to avoid leaving a paper trail.
In April 2012, Jorgenson learned of Microsoft’s potential investment in Barnes & Noble. Stokke accumulated options on the stock, resulting in a profit over $184,000 when the investment was announced. In July 2013, the pair bet against Microsoft’s stock after learning it would not meet earnings estimates, profiting over $218,000. In October 2013, they profited nearly $13,000 from increased earnings predictions.
Jorgenson admitted his guilt during the sentencing hearing, saying, “I cheated. I tried to take a shortcut for my own financial gain.” He acknowledged that the actions were clearly wrong. The investigation was conducted by the FBI and SEC, with prosecution handled by Assistant United States Attorney Katheryn Kim Frierson.
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Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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