Former Qualcomm executive charged
A former senior executive at Qualcomm made nearly US$250,000 in illegal profits from using inside information to buy stock in the wireless technology company and an acquisition target before major public announcements, according to an indictment unsealed on Monday.
Wang is accused of buying shares in three illegal trades - twice in Qualcomm and once in an acquisition target - in 2010 and 2011 through an account in the British Virgin Islands.
Also charged were his brother, Wang Bing, who lives in China, and Gary Yin, a former Merrill Lynch stockbroker in San Diego.
Qualcomm placed Wang Jing on administrative leave in May last year and launched an internal investigation of potential violations of the Foreign Corrupt Practices Act, according to the indictment.
Qualcomm spokeswoman Christine Trimble said Wang resigned in May this year.
The court released Wang on a US$3 million bond. He must be confined to his home and monitored by GPS until a hearing on October 8.
The indictment alleges that Wang bought 7,700 shares for US$36.07 each in March 2010 after learning that Qualcomm would announce an increase in its quarterly dividend and a US$3 billion stock repurchase programme.
The stock rallied 10 per cent on the news and Wang sold the shares in December that year at US$48.37 each, profiting to the tune of US$94,710.
Wang allegedly bought 10,800 shares of Atheros Communications in December 2010 for between US$34.16 and US$34.28 each after attending a Qualcomm board meeting in Hong Kong at which the firm decided to bid US$45 a share for the semiconductor maker.
Atheros shares rallied 20 per cent when the US$3.1 billion acquisition was announced and Wang allegedly sold his holdings in January 2011 at US$44.60 per share, reaping US$111,468.
The indictment says Wang bought 9,450 Qualcomm shares at US$50.88 that same month after learning that the company would post a strong earnings report. Wang allegedly sold the shares in December 2011 at US$54.90 each, making a profit of US$37,989.
Wang, who joined Qualcomm in February 2001, was president of the Asia-Pacific, Middle East and Africa operations from January 2008 to January 2011, when he was promoted to president of global business operations.
