Feds charge Qualcomm managers with insider trading
SAN DIEGO (AP) — The federal Securities and Exchange Commission has charged three former managers at Qualcomm Inc. with insider trading before the company's 2011 acquisition of Atheros Communications.
The SEC announced the allegations against Derek Cohen, Robert Herman and Michael Fleischli (FLY'-shlee) Monday, the same day the U.S. attorney in San Diego announced parallel criminal charges against Cohen and Herman.
Authorities allege the three men learned through emails and meetings that Qualcomm, the San Diego-based maker of chips and cellphone technology, was planning the acquisition of chip maker Atheros. They say the men bought Atheros securities based on information that had not been made public and cashed in on the spiking Atheros stock price.
Attorneys for Cohen and Herman denied any wrongdoing, and Fleischli's lawyer didn't immediately reply to a request for comment.