Pestotnik LLP Obtains Plea Agreement and No-Jail Sentence for Client Charged with Insider Trading

SAN DIEGO - April 28, 2015 - PRLog -- On April 23, 2015, a U.S. District Judge for the Southern District of New York sentenced Pestotnik LLP client John Johnson to time served, no fine, and two years of supervised release following a guilty plea. The client had been charged with receiving and trading on inside information concerning the $3 billion acquisition of Foundry Networks by Brocade Communications Systems in July 2008. Trial attorney and former prosecutor Josh Franklin of Pestotnik LLP successfully argued in favor of a noncustodial sentence in light of the client’s early acceptance of responsibility and cooperation with the government. Mr. Johnson was originally charged in 2013 along with Matthew Teeple, a former hedge fund analyst for Artis Capital Management, and David Riley, the former Chief Information Officer at Foundry. Teeple and Riley were both convicted of insider trading offenses but, unlike Mr. Johnson, received lengthy prison sentences. Teeple, who pled guilty, was sentenced to five years in prison, and Riley, who was convicted at trial, was sentenced to six and a half years in prison.

About Pestotnik LLP

Pestotnik LLP is a San Diego-based business litigation boutique that represents corporations, partnerships, and individuals in state and federal courts, arbitrations, meditations, and pre-litigation negotiations. The firm and its attorneys have handled a variety of disputes involving breach of contract, director and officer liability, securities fraud, breach of fiduciary duty, elder financial abuse, false advertising, fraud, and class action claims. Pestotnik LLP Partner Josh Franklin has also represented individuals investigated for or charged with white collar criminal offenses, including securities fraud and insider trading.