United States Attorney
Southern District of New York
FOR IMMEDIATE RELEASE CONTACT: U.S. ATTORNEY’S OFFICE
JUNE 30, 2011 ELLEN DAVIS,
Defendant Distributed Inside Information In Connection With Work
As A Consultant For Expert-Networking Firm
PREET BHARARA, the United States Attorney for the
Southern District of New York, announced today that MARK ANTHONY
LONGORIA pled guilty in Manhattan federal court to conspiracy and
fraud charges arising from a scheme in which he obtained and
provided material, nonpublic information regarding his employer,
Advanced Micro Devices (“AMD”), to employees and clients of an
expert-networking firm (the “Firm”) located in Mountain View,
California. LONGORIA also pled guilty to a separate scheme in
which he provided confidential business information about his
former employer, Western Digital Corporation (“Western Digital”),
to Firm employees and its clients. He pled guilty before U.S.
District Judge JED S. RAKOFF.
According to the Information, a Complaint previously
filed in this case, and statements made during today’s guilty
While working as a supply chain manager at AMD from
2007 to 2010, LONGORIA had access to internal billing reports and
sales forecast reports that covered all of the company’s product
lines. During this period, LONGORIA engaged in consultation
calls with employees and clients of the Firm. For two quarters
in 2009, he provided top line revenue and gross margin
information for AMD during some of these calls. Throughout the
period, he also routinely provided average sales prices and
product sales figures for all of the company’s product lines.
LONGORIA knew that this information would be used for purposes of
executing securities transactions.
For example, between July 2008 and November 2009,
LONGORIA provided AMD Inside Information to a hedge fund located
in New York, New York (the “New York Hedge Fund”), that executed
securities transactions, based in whole or in part, on LONGORIA’s
information. The New York Hedge Fund earned approximately $2
million in profits using LONGORIA’s information.
In 2006, in connection with a separate, but related
scheme, LONGORIA provided confidential business information
concerning the business of Western Digital to Firm employees and
its clients in his capacity as a Firm consultant.
The Firm paid LONGORIA approximately $200,000 for the
consultation services he provided from 2006 to 2010.
* * *
LONGORIA, 45, of Round Rock, Texas, pled guilty to one
count of conspiracy to commit securities fraud and wire fraud
(Count One), one count of conspiracy to commit wire fraud (Count
Two), one count of securities fraud (Count Three), and one count
of false statements (Count Four). He faces a statutory maximum
of 50 years in prison. Counts One and Four each carry a maximum
sentence of five years in prison, and Counts Two and Three each
carry a maximum sentence of 20 years in prison. LONGORIA also
faces a maximum fine of $250,000, or twice the gross gain or loss
from the offense on each of Counts One, Two and Four, and a
maximum fine of $5 million, or twice the gross gain or loss from
the offense on Count Three. As part of his plea agreement,
LONGORIA has agreed to forfeit the proceeds he obtained as a
result of the offense.
LONGORIA is scheduled to be sentenced by Judge RAKOFF
on July 1, 2013.
Mr. BHARARA praised the investigative work of the
Federal Bureau of Investigation. He also thanked the U.S.
Securities and Exchange Commission.
This case was brought in coordination with President
BARACK OBAMA’s Financial Fraud Enforcement Task Force, on which
Mr. BHARARA serves as a Co-Chair of the Securities and
Commodities Fraud Working Group. President OBAMA established the
interagency Financial Fraud Enforcement Task Force to wage an
aggressive, coordinated, and proactive effort to investigate and
prosecute financial crimes. The task force includes
representatives from a broad range of federal agencies,
regulatory authorities, inspectors general, and state and local
law enforcement who, working together, bring to bear a powerful
array of criminal and civil enforcement resources. The task force
is working to improve efforts across the federal executive
branch, and with state and local partners, to investigate and
prosecute significant financial crimes, ensure just and effective
punishment for those who perpetrate financial crimes, combat
discrimination in the lending and financial markets, and recover
proceeds for victims of financial crimes.
This case is being handled by the Office’s Securities
and Commodities Fraud Task Force. Assistant U.S. Attorneys
ANTONIA M. APPS, DAVID LEIBOWITZ, and REED BRODSKY are in charge
of the prosecution.