SAN DIEGO (AP) — Two former Qualcomm Inc. managers were criminally charged with insider trading for allegedly buying shares of a semiconductor maker before Qualcomm announced an agreement to buy the company.
Derek Cohen, 51, and Robert Herman, 52, allegedly used confidential company information to purchase shares in in Atheros Communications Inc. on Jan. 4, 2011, hours before news of the pending acquisition was reported by The New York Times. Qualcomm, a wireless technology titan, bought Atheros for $3.1 billion.
Cohen, Herman and another former Qualcomm manager, Michael Fleischli, 43, were also charged with insider trading by the U.S. Securities and Exchange Commission.
Cohen, a sales director for North America who joined Qualcomm in 1995, profited $205,375 from illegal trades on Atheros shares, according to the SEC. Herman, also a sales director for North America who joined the company in 2007, allegedly profited $29,318 from illegal trades.
Fleischli, a regional sales manager for North America who joined Qualcomm in 2007, profited $3,007, according to the SEC.