A former Nasdaq executive has been sentenced to 3-1/2 years in prison after pleading guilty for making hundreds of thousands of dollars by trading on confidential information.
Donald Johnson, 57, was director and then managing director of Nasdaq’s market intelligence desk before retiring in September 2009. In May he pleaded guilty to one count of securities fraud for his scheme, which ran from 2006 until 2009.
He was responsible for monitoring the stocks of companies traded on the Nasdaq as well as giving the companies information and analyses about trading in their stocks. As a result, Johnson received advance information about upcoming companies’ earnings, news releases and personnel changes.
Federal prosecutors accused him of using that inside information on at least eight occasions, reaping $641,000. Securities regulators said there was a ninth illegal trade that brings the total ill-gotten gains to just over $755,000…
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…
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.
Over at the Big Blog – and many other sites that halfway cover American business [or is that halfassed?] I have given up trying to correct the ignorant who constantly prattle about nothing ever being done about corruption on Wall Street.
Yes, there could be 10 times the prosecution and conviction of crooks. The leftovers from Bush-era SEC management still infests the Street. But, that’s as much a function of budgets still limited by Republican and Blue Dog Democrat conservatives who fear the hand of Zardoz descending upon them for daring to fightback against corruption.
Meanwhile, I continue to record a portion of these clowns sent up the river for their crimes.