A former chief information officer for Foundry Networks Inc. and an analyst for a firm that advises a group of hedge funds in San Francisco have been charged in New York in a $27 million insider trading case.
David Riley of Foundry was charged in federal court in Manhattan along with analyst Matthew Teeple. Prosecutors say Riley provided inside information about the networking hardware vendor to Teeple, who caused others to execute trades.
Teeple was arrested Tuesday in San Clemente, Calif.; Riley in San Jose. Both were expected to make initial court appearances in California. As authorities announced the arrests, they said a third defendant, Denver-based John Johnson, pleaded guilty this month to conspiracy and securities fraud charges.
Messages left for lawyers for Riley and Teeple were not immediately returned.