Ex-Nasdaq official admits insider trading

A former Nasdaq MD has pleaded guilty to earning $755,000 in illicit profits.

A former Nasdaq managing director has pleaded guilty to insider trading that netted him more than USD 755,000 in illicit profits over a three-year period,US authorities said.

The Securities and Exchange Commission (SEC) said yesterday it charged Donald Johnson “with insider trading on confidential information that he stole while working in a market intelligence unit that communicates with companies in advance of market-moving public announcements.”

The SEC alleged Johnson traded on advance information of corporate leadership changes,earnings reports and forecasts,and regulatory approvals of new pharmaceutical products.

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Johnson is also being charged in a parallel criminal action by the US Department of Justice,the SEC said.

According to the SEC,Johnson frequently placed the illegal trades directly from his work computer through an online brokerage account in the name of his wife,Dalila Lopez.

“This case is the insider trading version of the fox guarding the henhouse,” said Robert Khuzami,director of the SEC’s enforcement division.

“Instead of protecting Nasdaq client confidences,Johnson secretly traded on client information for personal gain,even using his Nasdaq office computer to make the trades.”

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The SEC said it was seeking repayment of the illicit profits with prejudgement interest and a monetary penalty,but did not provide a figure.

Bhavish Aggarwal (Photo via his Twitter page)

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