Thursday, 26 May 2016
Last updated 28 min ago
May 15 2013 | 1:14pm ET
Artis Capital Management analyst Matthew Teeple has pleaded not guilty to insider-trading charges.
Teeple and his alleged source, former Foundry Networks chief information officer David Riley, both entered not guilty pleas in Manhattan federal court yesterday. The two were arrested in March and face decades in prison on the conspiracy and securities fraud charges.
According to prosecutors, Riley told Teeple about Foundry's planned acquisition by Brocade Communications Systems in 2008. Teeple then pushed his colleagues at Artis to trade on the tip, and passed it on to two others, including a government cooperating witness, Karl Motey. Both Motey and the other recipient, former Wyoming Retirement System chief investment officer John Johnson, have pleaded guilty.
The scam netted the men more than $27 million in illicit profits, the government says.