California-based ex-Foundry Networks executive convicted in $27M insider trading case in NY

Markets Associated Press

A former chief information officer at a California-based technology company has been convicted in New York of insider trading charges in a scheme authorities say produced $27 million in illegal profits.

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San Jose, California, resident David Riley was convicted of conspiracy to commit securities fraud and securities fraud Thursday in federal court in Manhattan. Sentencing was set for Feb. 6. The jury deadlocked without a verdict on one count.

Riley is the 87th defendant convicted of insider trading in Manhattan in the last five years. He had denied the charges.

Prosecutors say he gave information from secret financial reports about Foundry Networks to a San Francisco-based hedge fund analyst who spread the information to others. The former analyst pleaded guilty to related charges in May.