Ex-AMD man admits insider trading

Former AMD employee Mark Anthony Longoria, has pleaded guilty to taking part in a four-year fraud scheme.

According to Bloomberg, Longoria, 45, of San Antonio, said that while he was working as a paid consultant to network outfit Primary Global Research he committed four crimes: two counts of conspiracy, a count of securities fraud and making false statements to prosecutors and FBI agents.

US District Judge Jed Rakoff noted that Longoria is facing 50 years inside unless he co-operates with prosecutors.

In a statement to the court, Longoria said that between 2006 and 2010, he was paid by PGR for providing material non-public information, mostly by telephone, to its hedge fund clients.

He knew that the hedge funds would use the non-public information he gave them to make trading decisions.

He passed tips about AMD’s margins and revenue to hedge fund managers in 2009 and also inside information about Western Digital when he worked for them in 2006.

Four hedge funds got the information, including Barai Capital Management, whose founder Samir Barai, pleaded guilty to federal charges in May.

Longoria supplied information about the AMD’s unit volumes and pricing information of its product lines.

In court he admitted that he conspired in the insider-trading scheme with Bob Nguyen, a former Primary Global analyst who pleaded guilty in January, and James Fleishman, a Primary Global sales manager who was charged with Longoria in December.

Longoria also named Phani Saripella, Primary Global’s chief operating officer, as a participant in the scheme. This was news because Saripella hasn’t been charged yet.

He did not get much dosh for informing on the companies he worked for. Primary Global paid him $300 for each telephone call to pass inside information about the AMD. He claims to have made about $200,000 from the scheme which he said operated from 2006 to 2010.