Seattle man gets 1.5 year sentence after insider trading netted him $400,000

Sentencing has finally been handed down in Microsoft's high-profile insider trading case last year, in which a senior portfolio manager at Microsoft and his business partner were formally charged with insider trading. Now-former Microsoft senior portfolio manager Brian Jorgenson and his partner Sean Stokke reportedly earned more than $400,000 from insider trading operations before being caught -- and while Jorgenson is set to be sentenced next week, the sentence for Stokke has already been revealed.

U.S. District Judge Marsha Pechman, the chief federal judge for the Western District of Washington, sentenced Stokke to 1.5 years in prison for his role in what the DoJ and SEC called "a sophisticated insider trading scheme." Stokke's 1.5 year sentence is far short of the maximum 20 year sentence for insider trading, and was reportedly cut down because of Stokke's cooperation with investigators including a plea deal he struck with prosecutors in April. Stokke's lighter sentencing most likely means that his former partner, Brian Jorgenson, will receive a heavier sentence closer to the maximum -- especially considering his role in the insider trading scheme as a senior portfolio manager of Microsoft.

Microsoft reported a net income of nearly $4.7 billion in their fiscal fourth quarter last year alone, which means that any potential profits lost from the insider trading scheme will make a negligent impact on the company's overall earnings. That said, Microsoft has zero tolerance for any insider trading or operations which could potentially compromise the company: in a statement to Neowin when the initial insider trading story broke, Microsoft said that they "helped the government with its investigation and terminated the employee," explicitly noting that any compromising actions by their employees is unacceptable.

Source: ReutersImage via Microsoft

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18 Comments

Also the poor guy who steal a car can get killed and the shooter wont get anything. This man steal money and is totally safe. If someone kills him then he will go to jail. Also the 400 00 is probably safe somewhere in a tax haven.

LaP said,
Also the poor guy who steal a car can get killed and the shooter wont get anything. This man steal money and is totally safe. If someone kills him then he will go to jail. Also the 400 00 is probably safe somewhere in a tax haven.

the difference is that the guy stealing cars is dumb one who if not stealing will have to become homeless, while the other is smart and probably already economically fine.

Now, this is what I'd like to teach convenience store robbers, people who rob people on the street and street level drug dealers. It's called the Dollar to Time ratio. That is, the amount of money you make committing your crime versus the amount of years you can receive in prison for that crime.

This guy's dollar to time ratio is approximately $266k. Now, that's worth it! Amirite?!

so what about the citibank and BofA and other banks who screwed up the economy with mortgage backed securities fraud? nothing. birds of a feather flock together.

the banks have crashed the entire global markets

actually my dad, a business major said that "too big to fail is a misnomer. if a bank fails, it will go away and anew bank will come out of the ashes, not necessarily from the old failed bank but the economy will bring about anew bank.. but the big banks don't want us to know this.

I did not talk about the bank. Of course a bank can die and eventually the market will replace them. The world wont end. It's not the bank that are too big. It's the people running them. Those people are too big, have too many friends, to fail.

Exactly his mistake was to not do enough. With 100 millions he would have been able to buy the right people to get nothing.

I don't quite understand your comment. My statement was not based on the whether the criminal was a "victim" of his/her circumstances but on a statistical finding where guilt has been established. In these cases a significantly higher percentage of convictions will lead to incarceration for non-white criminals.

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