Ex-SanDisk Worker To Cooperate In Trading Probe

Published February 17, 2012 6:36PM (EST)

NEW YORK (AP) — A former employee of a California memory card maker has pleaded guilty to a conspiracy charge, agreeing to cooperate with federal authorities in an insider trading probe.

Donald Barnetson entered the plea in federal court on Friday to a conspiracy to commit wire fraud and securities fraud charge. Authorities say he fed tips about SanDisk Corp. to a research firm in Portland, Ore. The plea came a day after the president of an Oregon investment research firm was arrested on conspiracy and securities fraud charges. John Kinnucan of Portland, Ore., was awaiting an initial court appearance Friday in Oregon. He was accused of obtaining secrets about publicly traded companies including SanDisk and selling the information to hedge funds and money managers.

By Salon Staff

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