LawFuel.com – Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced conspiracy and securities fraud charges against DAVID RILEY, a former Chief Information Officer and Vice-President for Foundry Networks, Inc. (“Foundry”), and MATTHEW TEEPLE, an analyst for an investment advisory firm to a family of hedge funds located in San Francisco, California (“Investment Adviser A”), for their alleged involvement in an insider trading scheme. RILEY allegedly provided material, nonpublic information (“Inside Information”) concerning Foundry, a publicly traded technology company, to TEEPLE.
TEEPLE then caused others to execute trades based upon the Inside Information, including in accounts managed by Investment Adviser A. In total, these trades earned Investment Adviser A profits of over $16 million and enabled Investment Adviser A to avoid losses in excess of $11 million. TEEPLE was arrested this morning in San Clemente, California, and is expected to be presented later today in federal district court in the Central District of California. Riley was arrested this morning in San Jose, California, and is expected to be presented later today in federal district court in the Northern District of California.
The Manhattan U.S. Attorney and the FBI also announced the unsealing of the guilty plea of JOHN JOHNSON to conspiracy and securities fraud charges in connection with this insider trading scheme. JOHNSON pled guilty to these charges on March 18, 2013, before U.S. District Judge John F. Keenan.