Wyoming Fires CIO After Insider-Trading Plea

Apr 4 2013 | 12:40am ET

The Wyoming Retirement System has fired its chief investment officer, after he pleaded guilty to participating in a hedge fund insider-trading scheme.

John Johnson admitted to trading on a tip he received from Artis Capital Management analyst Matthew Teeple on March 18. He also faces a lawsuit filed by the Securities and Exchange Commission.

Teeple allegedly learned of Foundry Networks' impending acquisition by Brocade Communications Systems in 2008 and passed the tip on to Johnson, a former money manager who was unemployed at the time, and to Karl Motey, an expert-networker who became a key cooperating witness for the government in the recent insider-trading crackdown.

Johnson made $136,000 trading on the tip.

The Arvada, Colo., man began working at the Wyoming pension in 2010. The system took pains to note that no state funds were involved in Johnson's trades, coming as they did years before his hiring. It added that it was unaware of the investigation into Johnson at the time it brought him on.

WRS Executive Director Thomas Williams said the $6 billion system would move quickly to hire a successor to the disgraced Johnson.

"Clearly, it's an important position, and we will be moving judiciously to identify a proper replacement for Mr. Johnson," he said.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note