Chairman gets prison for inside trades |
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Tue, 06 Feb 2007 22:55
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NEWARK, N.J. (AFX) - A plastics maker was sentenced Tuesday to 30 months in prison and ordered to pay a $1 million fine for trading on inside information when buying stock in the Musicland stores chain and C-Cube Microsystems Inc.Alfred S. Teo Sr., chairman of Alpha Industries Group of Lyndhurst, was ordered by U.S. District Judge Katharine S. Hayden to surrender April 10 to begin serving his term.Teo, 60, of Kinnelon, pleaded guilty in June, seven weeks into his trial. He pleaded guilty to three counts of insider trading regarding Musicland stock, admitting that he bought 45,000 shares in November and December 2000 with insider knowledge that Musicland Stores Corp. was about to be acquired by Best Buy Co. at a substantial premium.He also pleaded guilty to two counts of insider trading regarding trades of C-Cube Microsystems Inc. He admitted that he had nonpublic information regarding C-Cube because he was a board member of Cirrus Logic Inc., which was considering acquiring C-Cube.As a result of Teo's actions, which included giving tips to friends, shareholders of both companies lost more than $1.5 million, federal prosecutors said.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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SEC probes possible leaks on Wall Street 