Ex-SanDisk executive sentenced to probation for inside tips
By Nate Raymond
NEW YORK (Reuters) - A former executive of SanDisk Corp SNDK.O was sentenced on Tuesday to a year of probation after admitting to supplying illegal tips to a hedge fund consultant.
Donald Barnetson, 39, pleaded guilty in February 2012 to a charge of conspiracy to commit wire fraud and securities fraud as part of a broad U.S. government crackdown on insider trading.
At a hearing in federal court in New York, U.S. District Judge Kimba Wood also ordered Barnetson to pay a $4,000 fine.
Barnetson was one of a number of defendants charged as part an insider trading investigation focused on expert networking firms, which connect high-end investors with industry experts.
Prosecutors said that Barnetson, a senior director at SanDisk, a maker of memory chips, had provided confidential information to a consultant who ran a research firm in Portland, Oregon.
The consultant, identified in court papers as John Kinnucan, obtained insider information about companies including SanDisk, F5 Networks Inc (FFIV.O: Quote) and Flextronics InternationalFLEX.O, the documents said.
Kinnucan then sold the information to clients of his firm, Broadband Research LLC, including hedge funds and money managers, prosecutors said.