SEATTLE: US authorities filed criminal and civil charges against a former Microsoft manager, saying he fed inside information to a day trader who used it to clear $393,000 in illicit transactions.
Brian Jorgenson, 32, was a senior manager in Microsoft Corp.’s Treasury Group when he provided the information to his friend Sean Stokke, 28, according to documents filed in US District Court in Seattle.
They are accused of trading on three corporate developments: two recent quarterly earnings reports, and Microsoft’s 2012 investment in Barnes & Noble Inc.
“Brian’s approach to this is, he needs to make it right,” said Jorgenson’s attorney, Angelo Calfo. “He made a really bad decision, and he’s prepared to take his medicine.” A message seeking comment was left for Stokke’s attorney, Jennifer Horwitz.
The pair planned to use the proceeds to open their own biotech hedge fund, FBI agent Kathleen Moran wrote in the criminal complaint, which charges Jorgenson and Stokke with 35 counts of insider trading.
Both confessed when questioned, Moran wrote, adding that Stokke said he had given Jorgenson about $50,000 in cash out of the proceeds, in $10,000 increments, packed into envelopes.
The pair accumulated Barnes & Noble stock options in advance of Microsoft’s announcement that it was investing in the company’s digital book business, the FBI said. The announcement caused Barnes & Noble’s stock to jump by nearly half, and the pair made $184,000.
They’re also accused of trading on Microsoft’s failure to meet earnings expectations in the fourth quarter of fiscal 2013 and Microsoft’s increased first-quarter profit in fiscal 2014.
Former Microsoft manager charged with insider trading
Former Microsoft manager charged with insider trading
Second firm ends DP World investments over CEO’s Epstein ties
- British International Investment ‘shocked’ by allegations surrounding Sultan Ahmed bin Sulayem
- Decision follows in footsteps of Canadian pension fund La Caisse
LONDON: A second financial firm has axed future investments in Dubai logistics giant DP World after emails surfaced revealing close ties between its CEO and Jeffrey Epstein, Bloomberg reported.
British International Investment, a $13.6 billion UK government-owned development finance institution, followed in the footsteps of La Caisse, a major Canadian pension fund.
“We are shocked by the allegations emerging in the Epstein files regarding (DP World CEO) Sultan Ahmed bin Sulayem,” a BII spokesman said in a statement.
“In light of the allegations, we will not be making any new investments with DP World until the required actions have been taken by the company.”
The move follows the release by the US Department of Justice of a trove of emails highlighting personal ties between the CEO and Epstein.
The pair discussed the details of useful contacts in business and finance, proposed deals and made explicit reference to sexual encounters, the email exchanges show.
In 2021, BII — formerly CDC Group — said it would invest with DP World in an African platform, with initial ports in Senegal, Egypt and Somaliland. It committed $320 million to the project, with $400 million to be invested over several years.
