In a somewhat non technical story from Microsoft on Thursday, a senior portfolio manager with Microsoft was charged with insider trading. The manager, Brian D Jorgenson, was charged by the SEC along with his friends and business partners with the charges in a widely released case.
The shocking charges levied against the Microsoft official is one that will surely make its way through the tech world. The portfolio manager was a Microsoft veteran who worked his way up through the company, and used his inside knowledge to gain on investments via his friends and partners according to the SEC.
How He Did It
In its press release on Thursday, the SEC alleges that Brian D Jorgensen got confidential information about Microsoft via his work there, and then tipped his friend, Sean T Stokke in Seattle, and then both managed to profit from the inside knowledge of the stock move. The most recent news was tracked to October Microsoft stock trades.
The two partners of the Microsoft insider trading partnership then managed to split the illicit profits in shared brokerage accounts, according to the SEC. Their only goal with making these decisions were to generate enough profits to create their own hedge fund, which they would then launch at an unspecified time.
Criminal Charges Filed Against Microsoft Professional
In the state of Washington, criminal charges were filed against these two, and these two made an estimated $393,125 in profits from their insider knowledge of Microsoft’s stock. The first news that tipped the SEC, were trades circling around Microsoft’s news about the investment into Barnes & Nobles e-trader, and then grew from there.
Future trades from the Microsoft portfolio manager continued when Microsoft announced their fourth-quarter earnings in July 2013, when Microsoft announced its first quarter 2014 earnings on October 24th, 2013, and others. The two have been officially charged by the SEC and the state of Washington, and the Microsoft portfolio has taken a leave from the company as a result of these charges. The moves show that insiders with companies such as Microsoft still have a duty to keep knowledge private, and by illegally trading on it, can create problems.
I read this at first and questioned the move, but Microsoft is a huge company. They cannot tolerate these actions, and the right action was taken.