A former finance manager at Microsoft has found out that he is to serve 2 years in prison after being found guilty of insider trading. The person who helped him with the crime is going to serve 18 months. As a result of their trading the couple made over $400,000.
Brian Jorgenson 32 years of age and his accomplice Sean Stokkes both of Seattle were found guilty last Friday when they both appeared in the Seattle federal court. Jorgenson has admitted his crime and the sentence that he was given saying “I cheated. I tried to take a shortcut for my own financial gain.”
Once he is released he will still be subject to 3 years of supervised release and the pair will have to pay the $414,010 that they made. Some of the money has been taken as $140,550 was found in Stokke brokerage account and if there is not enough cash to pay it back, it will be possible for assets to be taken to make up the rest of the debt.
This week’s judgement has been the end of the case that started shortly after Microsoft had fired Jorgenson from his post as a senior manager in the treasury department. The case rested on the fact that Stokke was fed information future events and as a result transacted on stock in Barnes and Noble as well as Microsoft.
The court was told that a large proportion of the money came from the one transaction and that was when “put” options were put on Microsoft by Stokkes and he bet that the price of the shares would fall and this was what actually happened. With a drop of 11%, the pair made more than $200,000.
It is reported that the pair met when working at Parametric Portfolios and during the court case it was alleged that it was Jorgenson’s idea to carry out the illegal trades and split any profit down the middle. It appears that their plans were to get enough to start a biotech hedge fund.
While they only saw the money for a short period of time a fitting epitaph to the story is the fact that these two were some of the only people who managed to make any money as a result of Microsoft s foray into the computing hardware market. While it is true to say that crime does not pay, for a short period here it may have done.