Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ex-Foundry Networks Executive Denies Insider Charges

May 14 (Bloomberg) -- Former Foundry Networks Inc. executive David Riley and an ex-analyst pleaded not guilty to taking part in what prosecutors claim was a $27 million insider-trading scheme.

Riley, the former chief information officer for Foundry Networks, and Matthew Teeple, an analyst for a San Francisco-based hedge fund not identified by prosecutors, entered the pleas today to charges of conspiracy and securities fraud in federal court in Manhattan.

Prosecutors say Riley tipped Teeple about Brocade Communications Systems Inc.’s acquisition of Foundry Networks in July 2008, days before the move was announced publicly.

A third man, John V. Johnson, pleaded guilty to charges in the case March 18. He’s scheduled to be sentenced in September. All three men are free on bond.

Eric Bruce, a lawyer for Teeple, today asked U.S. District Judge Robert Patterson to modify his client’s bail conditions so he can take family trips to Hawaii in June and Oregon in August. Patterson approved the Hawaii trip and reserved decision on the August vacation, telling the parties they may be on trial then.

“I’m old and I expect trials to be faster than they currently are,” said Patterson, who turns 90 on July 11.

The case is U.S. v. Riley, 13-cr-00339, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Bob Van Voris in Manhattan federal court at rvanvoris@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net BRCD US <Equity>

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.