New Document top_band
 
Business Standard

Former Nasdaq MD on insider trading charges

Related News

A former managing director of the Nasdaq stock exchange has been sentenced to 42 months in prison and has been ordered to forfeit over $700,000 he illegally made in profits for his role in an scheme.

Donald Johnson, 57, had pleaded guilty in May this year to one count of securities fraud, admitting that from 2006 to 2009, he purchased and sold stock in Nasdaq-listed companies based on material, non-public information and inside information he obtained through his position as an executive at Nasdaq.

He was sentenced by US District Judge Anthony Trenga in the Eastern District of Virginia.

"Johnson's insider status at one of our nation's largest securities exchanges gave him access to highly sensitive information, which allowed him to anticipate the rise and fall of certain stocks," said Assistant Attorney General Lanny Breuer.

"Armed with this insider information... Johnson pocketed hundreds of thousands of dollars. But he did it by exploiting his trusted position to gain an unfair and illegal advantage in the market".

Johnson made $755,066 in illicit profits through inside information he had on various companies and has been ordered to forfeit the amount.

According to court documents, Johnson was managing director on Nasdaq's market intelligence desk in New York from August 2006 to September 2009.

The desk provides trading analysis and market information to companies that list on Nasdaq.

Johnson admitted that he repeatedly used company information related to earnings announcements and regulatory approvals to purchase or sell short stock in various Nasdaq- listed firms shortly before the information was made public.

In order to conceal his , Johnson executed these trades in a brokerage account in his wife's name, which he failed to disclose to Nasdaq in violation of its rules.

Johnson admitted in his plea that he made illegal purchases and sales of stock in Nasdaq-listed companies on at least eight different occasions.

The Securities and Exchange Commission has filed a related civil enforcement action against Johnson in New York.

Read more on:   
|
|
|
|

Read More

Fairfield Atlas rallies on delisting plan

The board of the company will meet on February 26, 2013, to consider and approve the delisting offer received from parent company.

Quick Links

 

Market News

Is Wipro the least preferred frontline IT stock?

Broad-based growth continues to elude the firm, sequential growth momentum fails to pick up over previous year

Gold imports stood at 638 tonnes in 2013-14

Quantity of gold imported in 2012-13 was 845 tonnes

Vietnam pepper exports crossed 110,000 tones

Whereas India could hardly managed to export only 9,500 tones of pepper during the period

Markets extend losses; RIL slumps over 2%

The S&P BSE Sensex slumped over 150 points at 26090 level while the CNX Nifty dipped over 50 points at 7,773 level

Pharma shares in demand; Healthcare index hits new high

Sun Pharma, Ranbaxy, Dr Reddy's Lab, Lupin, Glenmark, Wockhardt and Cadila Healtchare gained 1-8% on BSE.

Back to Top