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

MarketsAssociated 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.

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.

Continue Reading Below

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.