A former Netflix software engineer and his associate were sentenced to jail for an insider trading scam in which they made more than $3 million using confidential subscriber data.
According to Seattle federal prosecutors, Sung-Mo Jun, the former Netflix employee implicated in the plot, was sentenced to two years in jail on Friday.
His companion, Jun-woo Chon, was sentenced to 14 months. In addition, Jun and Chon were fined $25,000 for their offences.
In August, both Jun and Chon agreed to plead guilty to charges. According to the US Attorney’s Office for the Western District of Washington, another Netflix software engineer and Jun’s brother were also implicated and pled guilty.
Donald M. Voiret Statement
“Insider trading weakens our financial markets, hurts firms by exploiting sensitive information, and leads investors to lose trust in the system,” said Donald M. Voiret, special agent in charge of the investigation, in a release.
“This trusted employee’s and his friend’s activities were deliberate and continuous to gain a significant profit.”
Jun offered Chon and his brother, Joon Jun, confidential Netflix subscriber data when he was a software developer for Netflix. Based on the knowledge they subsequently gained by purchasing and selling Netflix stocks.
According to court records, when Jun departed Netflix in 2017, another engineer he supervised at the firm, Ayden Lee, continued to offer him sensitive subscriber information. Joon Jun and Lee are due to be sentenced next year.
According to the public statement, Jun told the court, “What I did was dumb, wrong, and unlawful, and I have no justification. I disappointed many people.”