This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-25444864
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Microsoft: Former manager and a friend charged with insider trading | Microsoft: Former manager and a friend charged with insider trading |
| (about 2 hours later) | |
| Former Microsoft manager Brian Jorgenson, and his friend Sean Stokke, have been charged with insider trading by the US securities regulator. | Former Microsoft manager Brian Jorgenson, and his friend Sean Stokke, have been charged with insider trading by the US securities regulator. |
| The Securities and Exchange Commission alleged that Mr Jorgenson, 32, tipped off Mr Stokke, 28, about Microsoft news before it was made public. | The Securities and Exchange Commission alleged that Mr Jorgenson, 32, tipped off Mr Stokke, 28, about Microsoft news before it was made public. |
| Mr Stokke traded on the information and the two shared in the profits, the regulator said. | Mr Stokke traded on the information and the two shared in the profits, the regulator said. |
| It said they made $393,125 (£240,000) in profits over 18 months. | It said they made $393,125 (£240,000) in profits over 18 months. |
| According to SEC documents filed in Seattle, the two men have admitted that "they knew it was illegal for them to trade on the basis of material non-public information". | According to SEC documents filed in Seattle, the two men have admitted that "they knew it was illegal for them to trade on the basis of material non-public information". |
| Jenny Durkan, a US attorney, added in a statement: "For every stock market winner, there is a loser, and trading on confidential inside information is a cheater's way of gaining at the expense of others." | Jenny Durkan, a US attorney, added in a statement: "For every stock market winner, there is a loser, and trading on confidential inside information is a cheater's way of gaining at the expense of others." |
| The commission said the two traded shares based on insider information between April 2012 and October this year. | The commission said the two traded shares based on insider information between April 2012 and October this year. |
| It said the first trade was carried out ahead of Microsoft's announcement in April 2012 that it would invest $300m in Barnes & Noble's e-reader and digital media business. | |
| The regulator alleged that the pair purchased Barnes & Noble call options ahead of the announcement, "which they sold for almost $185,000 in illicit profits". | The regulator alleged that the pair purchased Barnes & Noble call options ahead of the announcement, "which they sold for almost $185,000 in illicit profits". |
| 'Conceal their fraud' | 'Conceal their fraud' |
| In July this year, they traded in advance of Microsoft's fourth-quarter earnings. | In July this year, they traded in advance of Microsoft's fourth-quarter earnings. |
| "They knew that Microsoft's earnings were going to fall well short of analysts' consensus estimates and bought Microsoft options," the regulator said, adding that they made profits of over $195,000 when they sold the options. | "They knew that Microsoft's earnings were going to fall well short of analysts' consensus estimates and bought Microsoft options," the regulator said, adding that they made profits of over $195,000 when they sold the options. |
| They also traded ahead of the Microsoft's first-quarter earnings in October this year, which the commission said they knew "would exceed analysts' consensus estimates". | They also traded ahead of the Microsoft's first-quarter earnings in October this year, which the commission said they knew "would exceed analysts' consensus estimates". |
| "This time, in an effort to conceal their fraud, instead of trading directly in Microsoft options, they traded in options of the Technology Select Sector SPDR Fund, which held Microsoft common stock," it alleged. | "This time, in an effort to conceal their fraud, instead of trading directly in Microsoft options, they traded in options of the Technology Select Sector SPDR Fund, which held Microsoft common stock," it alleged. |
| They made almost $13,000 in profits from the trade. | They made almost $13,000 in profits from the trade. |
| According to the Associated Press news agency, Mr Jorgenson's attorney, Angelo Calfo said his client accepted he "made a really bad decision, and he's prepared to take his medicine". | According to the Associated Press news agency, Mr Jorgenson's attorney, Angelo Calfo said his client accepted he "made a really bad decision, and he's prepared to take his medicine". |
| Microsoft said it had "zero tolerance for insider trading. We helped the government with its investigation and terminated the employee". | Microsoft said it had "zero tolerance for insider trading. We helped the government with its investigation and terminated the employee". |
| Mr Stokke had previously worked with Mr Jorgenson at an asset management company. | Mr Stokke had previously worked with Mr Jorgenson at an asset management company. |