Jing Wang, 52, the former executive vice president and president of global business operations at Qualcomm pleaded guilty last July to insider trading charges, including trades on a 2011 deal for Atheros Communications, said the Justice Department.
He had also pleaded guilty to laundering the proceeds of his insider trading using an offshore shell company.
"Jing Wang gained unique access to information about the company's earnings and intended acquisitions and illegally exploited that inside information for personal gain," Assistant Attorney General Leslie Caldwell said in a statement.
"Jing Wang was a powerful insider at one of the world's top corporations -- but he threw it all away to make a few hundred thousand dollars," said US Attorney Laura Duffy of the Southern District of California.
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In early 2010, Wang bought around USD 277,000 of Qualcomm stock prior to the company's unexpected announcement of a dividend increase and stock repurchase program.
Then in December 2010, while he was in Hong Kong, Wang purchased Atheros stock hours after Qualcomm's board approved an offer for Atheros that had not been made public.
Wang "was sentenced today to 18 months in prison and fined USD 500,000," the Justice Department said yesterday.
It added that Wang conspired with his brother, Bing Wang, and his stock broker, Gary Yin, to fabricate evidence and concoct a false cover story for the trades.
Bing Wang is wanted on an international arrest warrant, the Justice Department said.