An Orange County based electrical engineer was sentenced to 18 months in federal prison for insider trading. Yuh-Yue Chen, of Taiwan, worked as a semiconductor engineer at Skyworks Solutions, Inc., a public traded company.
In 2014, Chen used his security badge and gained unauthorized access to the companies restricted financial information. Specifically, Chen reviewed the companies non-public earnings reports. Chen used this private information and bought large amounts of Skyworks securities. After the earnings report was publicly released, Chen made a profit by selling his securities.
Chen was sentenced in federal court in Los Angeles by U.S. District Judge Percy Anderson after pleading guilty to one count of securities fraud. In addition to his prison sentence, Anderson ordered Chen to pay $6,000 in court fines.
According to his plea agreement, employees caught Chen riffling through confidential papers. Chen then left the United States for Taiwan shortly thereafter. Federal investigators questioned Chen in Los Angeles in 2019 where Chen admitted to committing insider trading. Chen reportedly obtained more than $700,000 in illegal profits.
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The information obtained for this article came from a press release by the U.S. Attorney's Office.