A former Netflix engineer and his associates were sentenced to imprisonment for an insider trading plot that used confidential information about the company’s subscriber numbers to profit from stock trading.
49-year-old Sung Mo Jun in Bellevue, Washington, was sentenced to two years in prison on Friday for masterminding a complex and long-term plan that continued after he left the company.
His buddy Junwoo Chon, 50, said he had coordinated with Jun to execute the deal and paid a Netflix engineer’s kickback, after which he was sentenced to 14 months in prison and $ 10,000 for his role. Was sentenced to a fine.
At a hearing in the ruling, US District Judge Richard A. Jones accused the already wealthy Jun of incubating a bright red plot. There is only one reason: greed.
49-year-old Sung Mo Jun in Bellevue, Washington, was sentenced to two years in prison on Friday for masterminding a complex and long-term insider trading scheme.
Jun told the court:’What I did was stupid, wrong, and illegal … There is no excuse. Disappointed many people. ”
Insider trading is an insider trading that is often difficult to prosecute and refers to buying and selling stock based on important non-public information about the company to mow storms and avoid losses.
“Insider trading is a serious crime,” US lawyer Nick Brown said in a statement.
“Such an act damages the financial markets and undermines the trust of the public, because the investing public must have the belief that the market provides an equal playing field for all participants. Because there is, “he added.
‘Mr. Jun and Chung were both financially safe with good jobs and good salaries when greed urged them to break the law to increase their wealth at the expense of others. Such an act would not be tolerated, “Brown said.
From July 2016 to February 2017, the prosecution said Jun was hired by Netflix as a software engineer and had access to secret data showing the growth of paying subscribers.
From July 2016 to February 2017, the prosecution said Jun was hired by Netflix as a software engineer to access confidential subscriber data.
This data is typically released to the public once every three months during a company’s quarterly report, and numerical surprises can have a dramatic impact on Netflix’s stock price.
Jun disclosed information to his brother Jun Jun, 45, in Issaquah, Washington, and his best friend Jun Woo Chung.
After Chon made a significant profit on securities, Sung Mo Jun asked Chon to offer Sung Mo Jun a $ 60,000 cash kickback as a share of Sung Mo Jun’s profits.
Prosecutors said the plan continued after Sung Mo Jun left Netflix and received additional confidential information about subscriber data from another Netflix employee.
Jun not only passed on the information to his brother and Chung, but also used it to make his own transactions.
Prosecutors say the plan continued after Sung Mo Jun left Netflix when he received additional confidential information about subscriber data from another Netflix employee.
Between April 2017 and July 2019, Sung Mo Jun made a profit of $ 434,086 by using this inside information to trade Netflix stock and options.
Between July 2016 and April 2017, Jun’s brother Joon Jun earned $ 215,419 and conspirator Junwon Chon earned $ 521,400.
After all, insider trading resulting from Netflix Securities’ Sun Mo Jun resulted in an illegal profit of $ 1,170,905. Chon is responsible for the illegal profit of $ 1,642,855.
The remaining two conspirators will be sentenced to imprisonment next year. Joon Jun is responsible for a total of $ 1,106,208 in illegal profits. Lee is associated with an illegal profit totaling $ 453,465.
The Securities and Exchange Commission has filed individual civil enforcement proceedings against the defendants, each of whom has entered into a settlement with the SEC. Both men are still facing potential penalties from the SEC.
A wealthy Netflix engineer and his associates have been sentenced to imprisonment for an insider trading scheme
Source link A wealthy Netflix engineer and his associates have been sentenced to imprisonment for an insider trading scheme