A former Intel Corp. engineer and two others have been charged with insider trading after allegedly profiting by $232,000 when they traded securities of a small technology company that worked with Intel, federal officials said Friday.
Officials of the U.S. Securities and Exchange Commission and the U.S. Attorney's office in Los Angeles filed criminal complaints against Brian Pridgeon, 36, of San Jose, Calif., who was a product marketing engineer at Intel from January 1999 through March 2000.
Authorities also filed charges against his cousin, Stephon Carradine, 37, and his business partner Craig Smith, 50, both of Long Beach, Calif.
Each man faces charges of conspiracy and two counts of securities fraud that could land them in federal prison for up to 25 years if convicted.
``These actions affirm the Commission's commitment to ferreting out and prosecuting members of the high-tech community who engage in insider trading,'' Valerie Caproni, regional director for the SEC's Pacific Regional Office, said in a statement.
Loose lips sink ships
|' These actions affirm the Commission's commitment to ferreting out and prosecuting members of the high-tech community who engage in insider trading. ' |
-- Valerie Caproni, regional director for the SEC's Pacific Regional Office
Intel officials were not immediately available for comment.
Prosecutors said Pridgeon learned of a plan in fall 1999 under which Minneapolis-based Ancor Communications Inc. would collaborate with Intel to develop a new technology. Intel also planned to buy $14 million in Ancor's stock.
Authorities said Pridgeon used this knowledge to buy 5,600 shares of Ancor stock before the deal was made public in December 1999, and he ultimately sold the shares after the deal was announced for a profit of $137,000.
Pridgeon also allegedly told Carradine about the deal and he, in turn, tipped off Smith. The two bought options in Ancor, sold them just after the deal was made public, and made $95,000 in profits, officials said.