Ex-executive gets prison for insider trading scheme that netted $27 million in illegal profits

Markets Associated Press

The former chief information officer at a California-based technology company has been sentenced in New York to 6½ years in prison for an insider trading scheme that authorities say produced $27 million in illegal profits.

Continue Reading Below

Former San Jose, California, resident David Riley was sentenced Monday by a federal judge, who says insider trading strikes at the core of fairness in the markets.

Riley was convicted in October of securities fraud and conspiracy to commit securities fraud.

Given a chance to speak, Riley insisted he was not guilty.

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.