Update: Former NASDAQ Executive Sentenced to Prison for Insider Trading

by Wall Street Fraud on August 25, 2011

Investment fraud attorneyA few weeks ago, we told you about Donald Johnson, a former managing director of the Nasdaq Stock Market who had been charged with insider trading by the Securities and Exchange Commission. As detailed in the blog post, Johnson traded on confidential information stolen while working in a market intelligence unit that communicates with companies in advance of public announcements likely to influence the market, making more than $755,000 from illicit trades over a three-year period.

Most recently, Judge Anthony Trenga sentenced Johnson to serve 42 months in prison followed by one year of supervised release. The judge also signed a forfeiture order for the $755,000 amount.

"What I did was stupid," Johnson told the judge, noting that his "guilt and remorse had taken a toll." His lawyer reported that other trades wiped out much of the money he received from the insider trading.

As reported by Reuters, Johnson is the latest high-profile prosecution in a string of cases brought by the Obama administration in a bid to crack down on insider trading.

"Insider trading is an insidious and dangerous crime," said federal prosecutor Justin Goodyear, adding that Johnson abused a position of special trust and that Nasdaq was a major component of the U.S. financial system and economy.

At Wall Street Fraud, we are dedicated to offering assistance to those who have been hurt by improper corporate or investment practices.

If you have been the victim of stock brokerage fraud, securities fraud, mutual fund fraud, stockbroker fraud, annuities fraud, or any other type of investment fraud, please contact us today for a free case evaluation. Our talented and aggressive legal and professional staff is eager to help you recover your losses.

 

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