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NEW YORK (AP) — A former investment analyst for a San Francisco hedge fund was sentenced Thursday to five years in prison after prosecutors labeled him one of the most prolific leakers of inside information they'd ever seen.
Before hearing the sentence in federal court in Manhattan, a tearful Matthew Teeple apologized for bringing shame to his family.
"It saddens me beyond words and I am deeply remorseful," said Teeple, a married father of three small children.
U.S. District Judge Robert Patterson told Teeple he believed the letters of support describing him as a solid family man. But the judge added that the case showed the defendant couldn't be trusted with non-public information about earnings and acquisitions in Silicon Valley.
"I'm impressed with a lot of your characteristics, but you've got to be able to draw a line," Patterson said.
In court papers, prosecutors said that the federal district that polices Wall Street "has not seen an intermediate tippee as prolific as Matthew Teeple — someone who eagerly sought, passed, and used inside information from multiple sources time and again."
Teeple, 43, of San Clemente, California, pleaded guilty in May to spreading secrets that caused more than $30 million in illicit profits or losses avoided, and earned him hefty bonuses. As part of his plea deal, he agreed to forfeit more than half a million dollars and not to seek a prison term of less than five years.
Prosecutors had alleged that from 2005 to 2009, Teeple obtained confidential information about sales of technology firm Foundry Networks Inc. before the information was made public in earnings reports. In July 2008, while working for Artis Capital Management, Teeple learned from the executive, David Riley, that Foundry was about to be sold.
"Within minutes of learning about the deal from Riley, Teeple began calling his extensive network of friends, colleagues, and contacts at publicly-traded companies," court papers said. That day alone, he "called 15 different people, all of whom began purchasing Foundry stock or call options — some while still on the phone with Teeple," the papers added.
Riley was convicted of securities fraud charges at a trial earlier this month. His sentencing is set for Feb. 6.
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