NEW YORK – 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.
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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.