New VP At Boise's Micron Being Sued For Insider Trading While At Old Job
One of the new top bosses at Boise tech company Micron is accused of insider trading while at his old company. The government's Securities and Exchange Commission filed suit against Micron’s new vice president of the storage business unit. He’s been on the job with Micron for only six weeks.
After working at California-based tech company SanDisk, Anand Jayapalan joined Micron this summer. Both he and new Micron executive Sanjay Mahrotra are both veterans of SanDisk – a flash memory manufacturer Mahrotra co-founded.
In its lawsuit, the SEC claims Jayapalan shared insider information about SanDisk with his wife, aunt and uncle in 2014. The tips allowed the family members to make hundreds of thousands of dollars on stock trades.
The Statesman reports Micron is staying tight-lipped about the allegations against their new vice president of the storage business unit. The company won’t say if it was aware of the accusations against Jayapalan when he was recently hired, or if the SEC lawsuit has affected his status at Micron.
Three years ago, when Jayapalan was employed by SanDisk, the firm decided to buy flash data-storage company Fusion, Inc. Over Memorial Day weekend, Jayapalan made several phone calls to his family. The following Tuesday, Jayapalan's aunt and uncle started buying up Fusion stock, eventually getting more than 78,000 shares. When SanDisk announced it was buying Fusion in mid-June, the stock price jumped 22 percent, and the aunt and uncle soon started unloading their shares.
The SEC lawsuit wants Jayapalan and his family members to pay civil penalties and forfeit proceeds from the illegal transactions.
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