Silicon Valley company founder pleads to insider trading
SAN JOSE, Calif. (AP) — The founder of a Silicon Valley fiber optics equipment maker has pleaded guilty to insider trading.
Federal prosecutors say Peter C. Chang acknowledged Wednesday that he used brokerage accounts in the names of his brother and wife to buy and sell stock in Alliance Fiber Optic Products of Sunnyvale.
Under a plea deal, Chang acknowledged that in 2015 and 2016 he sold stock prior to two public announcements of company earnings in order to avoid losses when the stock price dropped.
He also acknowledged that in 2016 he bought stock before a potential acquisition of the company was announced.
Chang, who was the firm’s former president and CEO, entered pleas to insider trading and securities fraud.
He could face up to 20 years in prison and a $5 million fine.