ALEXANDRIA, Va. (AP) - A former managing director of the NASDAQ Stock Market has been sentenced to 3 1/2 years in prison after making hundreds of thousands of dollars on insider trades.
Fifty-seven-year-old Donald L. Johnson of Ashburn pleaded guilty in May in federal court to stock fraud. He admitted earning $641,000 on eight separate insider trades between 2006 and his retirement in 2009.
As a managing director, Johnson regularly consulted with companies when they had news that could potentially move markets. He was legally barred from profiting on that information.
Johnson apologized for his actions.
The 42-month sentence was roughly in line with what prosecutors sought and much longer than the 18-month sentence requested by Johnson's attorney.