WASHINGTON, Dec. 19 (Xinhua) -- U.S. Securities and Exchange Commission (SEC) on Thursday charged a senior portfolio manager at Microsoft Corporation and his friend and business partner with insider trading.
The SEC alleged that Brian Jorgenson, who works in the Microsoft's corporate finance and investments division, obtained confidential information about upcoming company news and tipped his friend Sean Stokke in advance of the Microsoft announcements.
The agency also alleged that the two equally split the illicit profits in their shared brokerage accounts after Stokke traded on the information that Jorgenson provided, saying the two planned to generate enough profits to create their own hedge fund.
According to the SEC's complaint, Jorgenson and Stokke made a combined 393,125 U.S. dollars in their scheme, which began in April 2012.
"Abusing access to Microsoft's confidential information and generating unlawful trading profits is not a wise or legal business model for starting a hedge fund," said Daniel Hawke, chief of the SEC Enforcement Division's Market Abuse Unit.