NEWS21 June 2010

SEC settles insider trading case against ex-Qualcomm analysis director

Legal North America

US— Andres Leyva, the former director of strategic marketing analysis at wireless technology firm Qualcomm, has paid a civil penalty of almost $35,000 to settle charges of insider trading.

Leyva was charged by the Securities and Exchange Commission last year for allegedly making more than $34,000 in illegal profits by trading on insider knowledge he had of a forthcoming deal between Qualcomm and Nokia.

The two firms had been due to go to court over a royalty payment issue but Leyva was given information about a last-minute settlement. It was alleged that he purchased 80 Qualcomm call options, which gave him the right to buy company shares for $50, shortly after hearing the news.

When news of the deal between Nokia and Qualcomm hit the markets the next day Qualcomm shares rose by 17% and, according to the SEC, Leyva sold the shares he had brought the previous day at a profit.

Leyva agreed to pay $34,739 to settle the charges, without admitting or denying the allegations against him.