A former Qualcomm executive who gained inside information about the company’s earnings and intended acquisitions and exploited it for personal gain was sentenced Friday to 18 months in federal prison and fined $500,000.
Jing Wang, 51, of Del Mar, pleaded guilty a year ago to insider trading, money laundering and obstruction of justice in connection with the three-year scheme.
Wang, an Executive Vice President and President of Global Business Operations for Qualcomm, was sentenced by U.S. District Judge William Q. Hayes.
“Jing Wang was a powerful insider at one of the world’s top corporations, but he threw it all away to make a few hundred thousand dollars,” U.S. Attorney Laura Duffy said.. “While Wang has lost his power, his position and his freedom, the real losers here are investors who play by the rules, and our nation’s financial system, which is diminished with every one of these schemes.”
After Wang used the inside information from Qualcomm for personal gain, he enlisted his stock broker and brother to cover it up, Assistant Attorney General Leslie Caldwell said.
In connection with his plea, Wang admitted he made three separate insider trades using a brokerage account in the name of his British Virgin Island shell company, Unicorn Global Enterprises.
First, in early 2010, prior to Qualcomm’s announcement of a dividend increase and stock repurchase, Wang bought company stock valued at about $227,000.
Wang also admitted that, in December 2010, while attending Qualcomm’s Board of Directors meeting in Hong Kong, and hours after the Board approved a non-public offer to purchase Atheros — a developer of semiconductors for wireless applications — he purchased stock in Atheros.
The defendant further admitted that, just a few weeks later, he directed his stockbroker, Gary Yin, to sell the Atheros stock for about $481,000 and purchase Qualcomm stock one day before the company announced record earnings.
Wang additionally admitted creating a false cover story in which he and Yin would blame Wang’s brother, Bing Wang, for the insider trading and ownership of the Unicorn account.
Yin pleaded guilty to conspiracy to obstruct justice and launder money and is scheduled to be sentenced July 17.
Bing Wang, who lives in rural China, has been charged in connection with the scheme and is wanted on an international arrest warrant.
—City News Service
>> Subscribe to Times of San Diego’s free daily email newsletter! Click hereFollow Us: