Former Netflix software engineer and his friend sentenced to prison for carrying out insider trading scheme that grossed over $ 3 million

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  • On Friday, a former Netflix software engineer and his friend were sentenced to jail for insider trading.

  • Sung Mo Jun and Junwoo Chon used the private data of Netflix subscribers to earn more than $ 3 million.

  • Another software engineer at Netflix and Jun’s brother were also involved and pleaded guilty.

A former Netflix software engineer and his friend were sentenced to jail for an insider trading scheme where they used private subscriber data to earn more than $ 3 million.

Sung Mo Jun, the former Netflix employee involved in the scheme, was sentenced to two years in prison while his friend, Junwoo Chon, was sentenced to 14 months on Friday, according to federal prosecutors in Seattle. Jun and Chon were collectively fined $ 25,000 for their crimes.

Jun and Chon both pleaded guilty in August. Another software engineer at Netflix and Jun’s brother were also involved and also pleaded guilty, according to a statement from the U.S. Attorney’s Office for the Western District of Washington.

“Insider trading undermines our capital markets, hurts companies by misusing their confidential information and causes investors to lose confidence in the fairness of the system,” said Donald M. Voiret, the special agent in charge. of the case, in the press release. “The actions of this trusted employee and his friend were calculated and continuous to reap enormous profit.”

When Jun was a software engineer for Netflix, he gave private Netflix subscriber data to Chon and his brother, Joon Jun. They then profited from buying and selling Netflix titles based on this information.

After Jun left Netflix in 2017, another engineer he mentored at the company, Ayden Lee, continued to give him private subscriber information, according to court documents. Joon Jun and Lee are due to be sentenced next year.

“What I did was stupid, wrong, illegal… I have no excuse,” Jun told the court, according to the press release. “I disappointed a lot of people.”

U.S. Attorney Nick Brown said in a statement those involved were motivated by greed and will face the consequences.

“Both Mr. Jun and Mr. Chon were financially secure with good jobs and good wages when greed drove them to break the law to increase their own wealth to the detriment of others,” Brown said in a statement. . “Such conduct will not be tolerated.”

The United States Securities and Exchange Commission has filed a separate civil action against the defendants. Although Jun and Chon have made deals with the SEC, the pair still face potential additional sanctions.

“For people in the high tech industry, they will clearly know that there are consequences – including jail time – for this activity,” said Judge Richard Jones, who presided over the case, in a press release.

Read the original article on Business Insider


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