By Allan Lengelticklethewire.com
Donald Johnson, a former managing director of the NASDAQ Stock Market, was sentenced Friday to 3 1/2 years in prison for engaging in insider trading on multiple occasions using non-public information he obtained in his role as a NASDAQ executive, authorities said.
Johnson was also ordered to forfeit $755,066.
Johnson, 57, of Ashburn, Va., was sentenced by U.S. District Judge Anthony J. Trenga in Alexandria, Va.
He pleaded guilty on May 26 to one count of securities fraud and admitted that from 2006 to 2009, he purchased and sold stock in NASDAQ-listed companies based on material, non-public information, or inside information, that he obtained through his position as an executive at NASDAQ.
“Mr. Johnson’s insider status at one of our nation’s largest securities exchanges gave him access to highly sensitive information, which allowed him to anticipate the rise and fall of certain stocks,” said Assistant Attorney General Lanny Breuer.
“Armed with this insider information, Mr. Johnson made investing look easy. He pocketed hundreds of thousands of dollars. But he did it by exploiting his trusted position to gain an unfair – and illegal – advantage in the market. Today’s sentence should leave no doubt in the minds of investors inclined to cheat that insider trading is a serious crime, with serious consequences.”
