April 25 A former Expedia Inc computer
support technician was sentenced to 15 months in prison on
Tuesday after admitting he stole confidential information from
senior executives' emails to profit from insider trading.
Jonathan Ly, 28, was sentenced by U.S. District Judge John
Coughenour in Seattle after pleading guilty in December to a
securities fraud charge for having engaged in an insider trading
scheme that prosecutors said netted him $331,000.
As part of a plea deal, Ly had also agreed to repay Expedia
the $81,592 it spent investigating the computer intrusion. He
previously reached a $375,907 settlement with the U.S.
Securities and Exchange Commission.
Prosecutors had sought a two-year prison sentence for Ly, a
resident of San Francisco, according to court papers. A lawyer
for Ly did not immediately respond to a request for comment.
According to court papers, in 2013, Ly began exploiting his
administrative access privileges to secretly review the contents
of devices belonging to executives including Expedia's chief
financial officer and head of investor relations.
Prosecutors said that using the non-public information he
obtained, Ly executed a series of well-times trades in Expedia
Even after he left the company in 2015, prosecutors said, Ly
kept a company laptop and continued accessing the electronic
devices and email accounts of Expedia executives.
Prosecutors said Expedia ultimately discovered the computer
intrusion and reported it to the Federal Bureau of
The case is U.S. v. Ly, U.S. District Court, Western
District of Washington, No. 16-cr-00316.
(Reporting by Nate Raymond in Boston; Editing by Tom Brown)