A Fremont man was sentenced to a year in prison and three years of supervised release in connection with an insider trading scheme that netted him and others more than $5 million, federal prosecutors said today.
King Chuen Tang, 42, was the CFO at a private equity fund in March 2008 when he learned that Tempur-Pedic International, Inc. was planning a pre-announcement before its regularly scheduled earnings announcement, according to the U.S. Attorney’s Office.
His employer was also planning to buy up to $50 million in Tempur stocks.
Tang shared that information with San Francisco resident Joseph Seto, 42, and Fremont resident Zisen Yu, 44, and the three netted around $1.9 million trading on the information, prosecutors said.
In April 2007, in a separate incident, Tang traded on a tip from his brother-in-law, a CFO at another private equity fund, and with others made around $3.7 million.
Tang was sentenced Thursday to one year and one day in prison and three years of supervised release, the latter including six months of home confinement and 1,000 hours of community service, prosecutors said.
Seto and Yu were sentenced on Feb. 21 to six months in prison and three years of supervised release. All three are scheduled to begin serving their sentences on April 29, 2013.
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