A former top Qualcomm Inc. executive pleaded guilty to one count of insider stock trading and one count of money laundering in a San Diego federal court July 21.
Jing Yang, 51, of Del Mar admitted using knowledge he had as Qualcomm’s president of global business operations to buy and sell stock of Qualcomm and another company in advance of several major announcements, including the company’s $3 billion purchase of a Silicon Valley chip manufacturer in January 2011.
Using his stock broker, Gary Yin, who pleaded guilty to one felony count involving money laundering last year, Yang bought stock in the company Qualcomm was buying, Atheros Communications, before the news was announced. After the news was released and Atheros’ stock rose, he sold the shares and profited by $95,000, according to federal prosecutors.
Wang also got Yin to buy Qualcomm stock ahead of the company’s announcing an increased quarterly dividend, and then sold it after the news was released. He arranged another stock purchase and sale of company stock that netted him large profits, prosecutors said.
In three separate incidents, Yang illegally gained about $250,000, prosecutors said.
Yang faces maximum penalties of 20 years in prison and a $5 million fine for the insider trading charge alone. He is scheduled to be sentenced Nov. 17 by Judge William Hayes.