SAN DIEGO, Sept. 23 (UPI) -- A former senior executive of Qualcomm Inc. was indicted in California Monday on federal insider trading charges, prosecutors said.
Jing Wang, 51, of Del Mar, Calif., former president of the wireless telecommunications device maker's global business operations, allegedly used inside information to profit from trading in shares of Qualcomm and Atheros Communications Inc. in 2010, the U.S. Justice Department said in a release. He allegedly used a secret brokerage account and an offshore shell company in the British Virgin Islands to hide his activities.
Wang also conspired with his brother, co-defendant Bing Wang, 53, and his former stock broker to obstruct a U.S. Securities and Exchange Commission investigation of the case and launder his illegal profits through a second offshore shell company and secret brokerage account, prosecutors allege.
"Insider trading is an insidious crime. It undermines ordinary investors' faith in our financial markets, and the Justice Department has zero tolerance for it," acting Assistant Attorney General Mythili Raman said.
"Today's charges show that you cannot trade on inside information, pocket the profit, and expect to get away with it."
Jing Wang was arrested by the FBI Monday and an arrest warrant was issued for his brother, believed to be a citizen and resident of China.
Both men face up to five years in prison if convicted on the conspiracy counts. Jing Wang could receive up to 20 years in prison for each of the other counts.
The former stock broker, Gary Yin, was charged with conspiracy.