A former Netflix software engineer and his friend were sentenced to prison for conducting an insider trading scheme that made more than $3 million

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A retired Netflix software engineer and his friend were sentenced to prison on Friday for insider trading.
Sung Mo Jun and Junwoo Chon used private Netflix subscriber data to make more than $ 3 million.
Another software engineer at Netflix and Jun's brother were also involved and pleaded guilty.
A retired Netflix software engineer and his friend were sentenced to prison terms for an insider trading system in which they made more than $ 3 million using private subscriber data.
Sung Mo Jun, the former Netflix employee involved in the scheme, was sentenced to two years in prison, according to the Seattle prosecutor, while his friend Junwoo Chon was sentenced to 14 months in prison on Friday. Jun and Chon were fined $ 25,000 for their crimes.
Both Jun and Chon pleaded guilty in August. Another software engineer at Netflix and Jun's brother were also involved and, according to a statement from the US Attorney's Office in the Western District of Washington, also pleaded guilty.
"Insider trading undermines our capital markets, harms companies by misusing their confidential information and causes investors to lose confidence in the fairness of the system," said Donald M. Voiret, the special envoy in charge of the case, in the statement. "The actions of this trustworthy employee and friend were calculated and continued to produce a huge profit."
When Jun was a software engineer for Netflix, he gave Chon and his brother Joon Jun private Netflix subscriber data. They then benefited from buying and selling Netflix stocks based on the information.
After Jun 2017 left Netflix, another engineer he mentored at the company, Ayden Lee, continued to give him private subscriber information, according to court documents. Joon Jun and Lee are due to be sentenced next year.
“What I did was stupid, wrong, illegal…. I have no excuse, "said Jun, according to a press release in court. "I have let a lot of people down."
US Attorney Nick Brown said in a statement that those involved were motivated by greed and must face the consequences.
"Mr. Jun and Mr. Chon were both financially secure with good jobs and good salaries when greed drove them to break the law to increase their own fortunes at the expense of others," Brown said in a statement. "Such behavior will not be tolerated."
The US Securities and Exchange Commission has filed a separate civil lawsuit against the defendants. Although Jun and Chon have reached a settlement with the SEC, both men face other potential penalties.
"People in the high-tech industry clearly know that these activities have consequences - including prison terms," ​​said Judge Richard Jones, who led the case, in a press release.
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