A former Qualcomm division president pleaded guilty Monday to insider trader and money laundering in San Diego federal court after making nearly a quarter of a million dollars from illicit transactions, according to the U.S. Department of Justice (DOJ).
Jing Wang, 51, the company’s former president of Global Business Operations, was indicted last year for using his insider knowledge of Qualcomm’s acquisition of Atheros Communications for illegal profits.
Court documents say in early 2010, Wang bought $277,739 of Qualcomm stock before the company announced an unexpected dividend increase and stock repurchase program.
Toward the end of the same year, Qualcomm made a non-public offer to purchase Atheros, and just hours later, Wang purchased Atheros stock while in Hong Kong, according to the DOJ.
In January 2011, he then ordered his former Merrill Lynch stock broker Gary Yin to sell Atheros stock in a brokerage account held in the name of Unicorn Global Enterprises, an offshore entity.
The DOJ says using the proceeds from the sold Atheros stock, Yin bought Qualcomm stock on Wang’s behalf the day before the company announced record earnings.
The money laundering charges against Wang stem from his transferring more than $525,000 in illegal profits from the Unicorn account to another brokerage account in the British Virgin Island for Clearview Resources Ltd.
In his plea agreement, Wang also admitted to obstruction justice by conspiring with Yin and his brother, Bing Wang, to make up evidence and concoct a false cover story that Bing Wang carried out the trades.
Bing Wang has been charged in the scheme, and an international arrest warrant on him remains outstanding. Federal officials believe he is living in China.
Yin has pleaded guilty to conspiring with the Wang brothers to obstruct justice and launder money, according to the DOJ, and his sentencing is scheduled for Sept. 15.