Former Microsoft Corporation (MSFT
) senior manager Brian Jorgenson was charged with insider trading on Thursday.
Last month, Brian Jorgenson a senior manager in MSFT’s Treasury Group was with his wife and four children when the FBI showed up for questioning. Jorgenson confessed that he had given a friend, who was an experienced day trader, confidential information three times in the last year and a half. The former manager said that the two profited by nearly $400,000 from betting correctly that MSFT’s stock would fall after its Q4 earnings and rise after its Q1 earnings.
On Thursday, Jorgenson and his friend Sean Stokke were charged with 35 felony counts and will be forced to forfeit their profits. MSFT reported that it has a zero tolerance policy against insider trading and had helped in the investigation.
The charges allege that the two friends planned to use the money to start a hedge fund, which indicates that they knew what they were doing. Jorgenson apologized for the illegal trading and reported that greed led him to make the trades.
Microsoft shares were mostly flat during pre-market trading Friday. The stock is up 36% YTD.
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