Former executive director of the Market Information Department at Nasdaq stock Donald Johnson admitted his quilt in using insider information in stock trading, The Washington Post says.
According to Business Week, Johnson admitted using confidential data while trading securities of five companies in 2006-2009. He confirmed illegally earning over $640 000. The US SEC thinks that Johnson’s profit from such deals exceeded $755 000.
Johnson faces the sentence of 20 years of imprisonment and $5 mln fine. The defense hopes for a sentence of approximately 30-37 months (2.5-3 years).
Recently another decision on the case of Russian banker Aleksey Kovalev has been made. He was sentenced to 26 months of imprisonment for using insider information. He and his partner Igor Poteroboy earned $1.4 mln.
The biggest case of insider trading in the US was the case of American billionaire Raj Rajaratnam, head of Galleon Group hedge fund. In May of 2011 the court convicted him for 14 Articles. Rajaratnam may be imprisoned for 25 years.
