DOJ and SEC Allege $27 Million Insider Trading Scheme

The DOJ and SEC alleged yesterday that inside information shared with a hedge fund analyst and others by the chief information officer of Foundry Networks Inc. led to an over $27 million insider trading scheme. Prosecutors charged the Foundry executive, David Riley, and a hedge fund analyst named Matthew Teeple with conspiracy to commit securities fraud and three counts of securities fraud. In addition, the SEC filed civil charges against Riley, Teeple and a third man named John Johnson.

via DOJ and SEC Allege $27 Million Insider Trading Scheme – Compliance Week