Ex-Artis Analyst Gets Five Years For Insider Trading

Oct 17 2014 | 7:05am ET

A former hedge-fund analyst was sentenced to five years in prison for passing a tip about an impending merger to 15 people.

Matthew Teeple’s sentencing yesterday was little more than a formality; prosecutors agreed to recommend a five-year term after the former Artis Capital Management analyst pleaded guilty to conspiracy charges in May. U.S. District Judge Robert Patterson also ordered Teeple to pay $653,890 in fines and forfeitures.

Prosecutors called Teeple’s one-day tipping spree “unparalleled.” On the day he learned of Brocade Communications Systems’ planned acquisition of Foundry Networks in 2008, from Foundry executive David Riley, he told 15 others, including the then-chief investment officer of Wyoming’s public pension system. He also pushed his colleagues at Artis to trade on the tip, which prosecutors said enable the hedge fund to earn more than $36 million.

“He was a shotgun, firing information out to multiple people,” prosecutor Telemachus Kasulis said.

“I’m deeply apologetic to all those impacted by my actions,” Teeple said. Among those impacted are Riley, who was convicted of insider-trading earlier this month.

No one else at Artis was charged with any wrongdoing.

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