BY J. CLARA CHAN | HollywoodReporter.Com
Troy Warren for CNT #Business
Sung Mo Jun, 49, was also given a $15,000 fine for leading an insider trading ring that brought in more than $3 million in profit based on information about Netflix’s subscriber growth.
A former Netflix engineer was sentenced to two years in prison and given a $15,000 fine for his role in leading an insider trading ring based on private information about the streaming giant’s subscriber growth, the U.S. Attorney’s Office for the Western District of Washington said on Friday.
The former engineer, Sung Mo Jun, pleaded guilty to securities fraud in August. During his sentencing, Jun apologized for his actions to the court. “What I did was foolish, wrong, illegal,” Jun said, according to the U.S. Attorney’s Office. “I have no excuse. I disappointed many people.”
Jun was sentenced to prison alongside one of his co-conspirators, Junwoo Chon, who was sentenced to 14 months in prison and given a $10,000 fine.
According to the plea agreement filed in August, Jun was a software engineer for Netflix from July 2016 to February 2017 and used insider information about Netflix’s subscriber growth to tip off Chon and Jun’s brother, Joon Mo Jun, as they bought and sold Netflix stock.
After Jun left Netflix, he continued to receive insider information from another Netflix software engineer, Ayden Lee, to inform the group’s stock trading. Lee and Jun’s brother are expected to be sentenced next year.
In addition to Jun and Chon’s sentencing, they will each forfeit $495,188 and $1,582,885, respectively, to the U.S. based on the profit they made based on insider information. After completing their sentences, Jun and Chon will also be required to complete 50 hours of community service.
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