updated 06:08 pm EST, Mon December 23, 2013
Trio accused of channeling the profits to nascent hedge fund
The Securities and Exchange Commission have charged a since-departed portfolio manager at Microsoft and two others with insider trading. The SEC claims that Brian Jorgenson was able to use confidential information obtained through his tenure at Microsoft and informed Sean Stokke prior to any announcements it would make. Stokke would then funnel the profits gained to a shared account.
Chief of the SEC's Market Abuse unit Daniel M. Hawke said of the charges that "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," a reference to their apparent goal.
The SEC believes that the trio split the profits in shared brokerage accounts, with Jorgenson and Stokke attempting to launch a hedge fund with the profits. Jorgenson and Stokke made a combined $393,125 in profits from the illicit trades, which commenced in April 2012. A Microsoft spokeswoman claims that the company has "zero tolerance for insider trading" and it has "helped the government with its investigation and terminated the employee."