Tuesday, March 26, 2013

$27 million Silicon Valley insider-trading ring busted

AP’s Larry Neumeister repoer that the former chief information officer for a technology company and an analyst for a Bay Area hedge fund were arrested Tuesday in a $27 million insider trading case that prosecutors say involved several Silicon Valley companies.

Federal authorities arrested David Riley, 47, a former vice president at Santa Clara-based Foundry Networks, which made networking hardware before it was acquired by larger San Jose rival Brocade Communications Systems for about $3 billion in December 2008; and analyst Matthew Teeple, 41, of Artis Capital Management, a San Francisco-based hedge fund. Each was charged in federal court in Manhattan with conspiracy to commit securities fraud and three counts of securities fraud. If convicted, each could face up to 65 years in prison….

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