Qualcomm Executive Pleads Guilty to Insider Trading and Money Laundering
Jing Wang, 51, former Executive Vice President and President of Global Business Operations for Qualcomm Inc., pleaded guilty today in federal court to insider trading in shares of Qualcomm and Atheros Communication and money laundering. Wang created a shell company to deposit the proceeds of his illegal white collar fraud scheme which was located off shore.
According to authorities, between 2010 and 2011, Wang committed three separate acts of insider trading. In 2010, Wang purchased $277,739 of Qualcomm stock just before an announcement that Qualcomm was to announce a dividend increase and stock repurchase program. In December 2010, Wang purchased Atheros Communication stock after Qualcomms board made a non-public offer to purchase Atheros. In January 2011, Wang directed his broker, Gary Yin to sell the Atheros stock held in the name of an offshore account and used this money to purchase additional Qualcomm stock one day before they announced record earnings. In total, Wang made over $250,000 with all three trades.
The money laundering count arose out of the transfer of funds to an offshore account, Unicorn Global Enterprises in the British Virgin Islands. In addition to Wang others were charged with obstruction for their role in assisting the cover up, including Gary Yin.