NEW YORK, March 26 (Reuters) - Federal authorities on Tuesday announced criminal charges against three new defendants in the government’s broad-based insider trading probe.
The U.S. Attorney in Manhattan said former Foundry Networks executive David Riley leaked tips about the company to Matthew Teeple, an analyst for an investment advisory firm to a family of hedge funds in San Francisco, and Teeple then passed the information to others who traded on it.
These trades resulted in more than $27 million in profits and avoided losses, prosecutors said.
Prosecutors also said a co-defendant, John Johnson, has pleaded guilty to related charges.
All three defendants were also charged by the U.S. Securities and Exchange Commission in separate civil proceedings.