http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370540525813
The SEC alleges that Brian D. Jorgenson, who lives in Lynwood, Wash.,
obtained confidential information about upcoming company news through
his work in Microsoft’s corporate finance and investments division.
Jorgenson tipped Sean T. Stokke of Seattle in advance of the Microsoft
announcements, the most recent occurring in October. After Stokke
traded on the inside information that Jorgenson provided, the two
equally split the illicit profits in their shared brokerage accounts.
They made joint trading decisions with the goal of generating enough
profits to create their own hedge fund.
In a parallel action, the U.S. Attorney’s Office for the Western
District of Washington today announced criminal charges against
Jorgenson and Stokke.
“Abusing access to Microsoft’s confidential information and generating
unlawful trading profits is not a wise or legal business model for
starting a hedge fund,” said Daniel M. Hawke, chief of the SEC
Enforcement Division’s Market Abuse Unit and director of the SEC’s
Philadelphia Regional Office. “We thwarted the misguided plans of
Jorgenson and Stokke as they sought to illegally profit at others’
expense.”
According to the SEC’s complaint filed in U.S. District Court for the
Western District of Washington, Jorgenson and Stokke made a combined
$393,125 in illicit profits in their scheme, which began in April 2012.
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