WASHINGTON, Aug. 12 (UPI) — Donald Johnson, a former managing director of the Nasdaq over-the-counter stock market, was sentenced Friday to 42 months in a U.S. prison for insider trading.
Johnson, 57, of Ashburn, Va., was also ordered to forfeit more than $750,000, the Department of Justice said. He pleaded guilty in the eastern district of Virginia in May to using inside information obtained through his position as a Nasdaq executive to profit from securities trading between 2006 and 2009.
“Mr. Johnson’s insider status at one of our nation’s largest securities exchanges gave him access to highly sensitive information, which allowed him to anticipate the rise and fall of certain stocks,” said Assistant Attorney General Breuer. “Armed with this insider information, Mr. Johnson made investing look easy. He pocketed hundreds of thousands of dollars. But he did it by exploiting his trusted position to gain an unfair — and illegal — advantage in the market. Today’s sentence should leave no doubt in the minds of investors inclined to cheat that insider trading is a serious crime, with serious consequences.”