Ex-NASDAQ director sentenced for insider trading
A former managing director of the NASDAQ Stock Market has been sentenced to 3.5 years in prison after making hundreds of thousands of dollars on insider trades, The Associated Press reported.
Donald L. Johnson of Ashburn pleaded guilty in May in federal court to stock fraud. He admitted earning $641,000 on eight separate insider trades between 2006 and his retirement in 2009.
As a managing director, Johnson regularly consulted with companies when they had news that could potentially move markets. He was legally barred from profiting on that information.