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Father of four is sentenced to two years in prison for insider trading, loses $130K/year job

Brian D. Jorgenson, 32, had what most Americans would consider a dream job.  As a senior manager of a portfolio in Microsoft Corp.'s (MSFT) Treasury Group he earned over $130,000 USD per year and had a host of sweet benefits.  But in 2012 he made the fortuitous decision to secretly contact a former colleague whom he had worked with for several years at an investment management firm, prior to joining Microsoft.
 
I. Dream Job, Dream Home, Dream Family, Dream Life
 
The pair would engage in a series of three rounds of insider trading, a move which would ultimately cost Mr. Jorgenson not only his job at Microsoft, but also his freedom.  While Chief Judge Marsha J. Pechman of the U.S. District Court for the Western District of Washington at Seattle went relatively easy on the first time offender, he still will have to serve two years in prison for his white-collar crime.  He was also sentenced to 500 hours of community service.
 
His co-conspirator, day trader Sean T. Stokke, 28, was sentenced to 1 and 1/2 years in federal prison.  The duo will likely have to pay financial charges.
 
In 2011 when Mr. Jorgenson scored a coveted job at Microsoft he seemed to be on top of the world.  He and his wife Jessica had just had their third child -- a girl. 

Brian Jorgenson
Brian Jorgenson, 32, seemed to have it all together -- a great job, a wife, four kids, and a beautiful house.  But his world unraveled when U.S. feds caught him performing insider trading. [Image Source: Jesicca (Willis) Jorgenson/Facebook; Fair Use (17 U.S.C. § 107)]

Together with their previous children -- a boy and girl, ages 6, 3 --- they looked the perfect family.  Public records show they lived in a $283,000 USD home in Everett, Washington.

Brian Jorgenson
The former Microsoft manager is now serving time in prison and lost his job.[Image Source: Jesicca (Willis) Jorgenson/Facebook; Fair Use (17 U.S.C. § 107)]

But in April 2012, cash-strapped by his 7- and 4-year-old's private Christian school tuition bills, Mr. Jorgenson made a fateful decision.  Informed via a confidential internal email that his company would be purchasing a stake in Barnes & Noble Inc.'s (BKS) Nook e-reader business, temptation took hold.  He recalls in a candid interview with The Seattle Times:

“I struggled with this,” Jorgenson said.

He knew it was wrong, but he found reasons to look past that. “I lied to myself,” he said. He saw news stories about how members of Congress were allowed to pass on the sort of insider information that he couldn’t.

“I told myself, ‘Members of Congress can do it.’ ”

He said he called his friend, an experienced day trader, and they convinced one another it would be OK.

“I asked him if he’d be comfortable with me passing on information,” Jorgenson said. “I told him we would make money. He said, yep, he’d be comfortable with it. So I gave him the information.”

Nook
Mr. Jorgenson first tipped news of a pending deal with Barnes & Noble in 2012.
[Image Source: Getty Images]

The tip paid off handsomely for Mr. Jorgenson and his day trader friend Mr. Stokke, who worked as an investment analyst at a local aerospace firm, was emboldened by the success.  Inspired by the success, the next year Mr. Jorgenson would leak Microsoft's Q2 and Q3 2013 earnings reports to Mr. Stokke who correctly predicted that the Q2 result would lead to a drop in share prices, while the Q3 earnings would raise share prices.
 
II. Crime and Punishment
 
In total the pair netted just over $414,000 USD with their scheme, according to federal prosecutors.  Of that Mr. Stokke gave Mr. Jorgensen $40,000-50,000 USD placed within unmarked paper envelopes.  By 2013 Mr. Jorgenson was dreaming big, hoping to leave Microsoft and found a hedge fund called "BioHawks Investment Group" with Mr. Stokke, using much of the remaining money.

Microsoft new sign
The Microsoft financial manager planned to leave his firm and start a hedge fund with his proceeds from insider trades. [Image Source: Bloomberg]

But those plans were put on hold when investigators with the U.S. Security Exchange Commission (SEC) became suspicious of Mr. Stokke's trades.  While the pair had tried to cover their tracks with so-called "burner phones" -- prepaid cellular phones -- had dealt in cash only, and had even obfuscated their trading trends in the final trade by buying an ETF that was heavily cornered on Microsoft, their efforts at secrecy ultimately failed.
 
While prosecutors did not reveal their exact method for catching the pair publicly, often reviews of tax records and unusual trades turn up such mid-scale insider trading.  Also, potentially eyebrow raising was the very short time period between the initial Barnes & Noble options buys and the public announcement of the Nook deal.  After that, authorities may have been watching Mr. Stokke carefully.

SEC seal
SEC officials confronted Mr. Jorgenson at his home in November. [Image Source: Getty Images/Bloomberg]

Late last year federal prosecutors confronted Mr. Jorgenson at his home.  He recalls:

The doorbell rang and I went and opened it and there they were, about a dozen of them.  I told my wife to gather up the kids.  The agents were nice enough to let them leave for a few hours.  [At that point I decided] to man up.

But manning up wouldn't make his problems go away.  He and his partner were charged [PDF] with 35 felony counts each for insider trading, in violation of the U.S. Securities Act of 1934 (15 U.S. Code § 78) and corresponding sections of the electronic Code of Federal Regulations (e-CFR) (17 C.F.R. §240).  According to Reuters, these charges carried a maximum term of 20 years each.

III. Former Manager Says He's Thankful, Humbled by Charges

Ultimately prosecutors and Chief Judge Marsha J. Pechman agreed to avoid seeking lengthier sentences against the plaintiffs, in part because Mr. Jorgenson seemed very contrite and agreed to give statements in press releases apologizing for his role.

In his closing comments to The Seattle Times, he states:

I am sorry.  It was just greed. I was focusing too much on the material things. This is an aberration of who I am.  I’m hoping that this mess I’ve created can be my message.

I made some stupid, stupid decisions that have put my future, and the future of my family, in jeopardy.  If this is God’s way of getting the greed out of my heart, then this is good.  This is what I want to happen.

Daniel M. Hawke, chief of the SEC Enforcement Division's Market Abuse Unit and director of the SEC’s Philadelphia Regional Office, adds in an SEC press release:

Abusing access to Microsoft’s confidential information and generating unlawful trading profits is not a wise or legal business model for starting a hedge fund.  We thwarted the misguided plans of Jorgenson and Stokke as they sought to illegally profit at others' expense.

Brian Jorgenson
Brian Jorgenson said his conviction was necessary for God to free him of his greed.
[Image Source: LiveMint.com]

In court, prior to his sentencing, Mr. Jorgenson stated:

I cheated. I tried to take a shortcut for my own financial gain…. I persuaded myself it was a gray area, when it clearly was black and white.

Mr. Jorgenson, who just had his fourth child -- another girl -- last year will have to rebuild his career and find a new way to provide for his family when he gets out of prison sometime in the next couple years.  He was terminated from his coveted position at Microsoft after an internal investigation for violations of Microsoft's zero-tolerance policy with respect to insider trading.

Sources: FBI, SEC [PDF], The Seattle Times, Reuters





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As far as I'm concerned..
By teldar on 8/11/2014 9:46:32 PM , Rating: 5
Hypocrisy at it best. It's legal for people of the U.S. government to do it all day long, but if someone who is involved with one of the companies does it, BAM, jail time. What a load of shit. Just another example of the secondary society above the law the government has created for itself.




RE: As far as I'm concerned..
By retrospooty on 8/11/2014 10:04:58 PM , Rating: 3
Yup... Pretty much, only much worse than you make it out to be.


RE: As far as I'm concerned..
By Reclaimer77 on 8/11/2014 10:55:55 PM , Rating: 2
It's no wonder we have the highest percentage of our population in prisons. White collar BS crimes like this.

Seriously they didn't steal from anyone, they didn't harm anyone, they just gamed this BS financial system we have.

Fine/confiscate whatever they made from this scheme and move on. Seriously two guys need to go to prison for TWO years for this? It's nonsense! Rapists get less than that, come on.

Also it seems like they were VERY careful, yet the Government wont say how they caught them. *cough* Domestic spying *cough*


RE: As far as I'm concerned..
By idiot77 on 8/12/2014 12:02:48 AM , Rating: 3
Yeah, the prisons are jammed up with white middle class men...... Oh wait.


RE: As far as I'm concerned..
By room200 on 8/12/2014 12:33:10 AM , Rating: 1
See, reclaimer77 thinks if you're white and privileged, you should go to jail.


RE: As far as I'm concerned..
By room200 on 8/12/2014 12:34:25 AM , Rating: 2
Oh, wait. He doesn't.


RE: As far as I'm concerned..
By peterrushkin on 8/12/2014 12:56:41 AM , Rating: 3
No someone called themselves idiot 77.

Haha classic XD


RE: As far as I'm concerned..
By idiot77 on 8/12/2014 2:04:11 AM , Rating: 3
I've been on Anandtech and DT since about 1998. I changed my handle on DT away from the one use on Anandtech because I was so impressed with his consistent stupidity. Amazingly when I first did it about 3 years ago, people actually use to feed and agree with him. I'm seeing some evolution finally. It's about time.

He will say a poor black kid busted with a dime bag 3 times deserves life in prison without a chance of probation is fair. But if someone robs someone of many hundreds of thousands of dollars... "meh".


RE: As far as I'm concerned..
By Reclaimer77 on 8/12/14, Rating: 0
RE: As far as I'm concerned..
By chripuck on 8/12/2014 10:46:32 AM , Rating: 2
I often times disagree with you and your perspective, but you're spot on here. It's ridiculous they're sending this guy to jail, ruining his life and more importantly, potentially ruining the life of his children.

Fine him, take the profits away he made and be done with it. This is patently absurd...


RE: As far as I'm concerned..
By Reclaimer77 on 8/12/2014 11:02:44 AM , Rating: 3
Well that's the problem here, isn't it? The so-called "Criminal Justice System" of America has been radically monetized. Hurling extraneous charges at someone and throwing them in jail is a big BUSINESS!

quote:
Fine him, take the profits away he made and be done with it.


Exactly. That's a completely appropriate response to a FIRST OFFENDER! These guys have no criminal record, and it's the first time they ever did this.

I could understand jail time if this was a recurring thing. But two years in prison for a first offense for "insider trading"?

Also I think even a broader Constitutional case can be made here. We are all supposed to have "equal protection under the law". If it's a known fact that those in the Government break this law and get away with it completely unchecked, throwing these two in jail for the same thing seems to me a violation of their Constitutional protections.

It just feels wrong. This whole thing stinks.


RE: As far as I'm concerned..
By wordsworm on 8/13/2014 12:19:35 PM , Rating: 1
If he wasn't a white Christian and instead an atheist or 'foreigner', I'm sure you'd be saying 2 years is too short.

Two years for a huge amount of money seems more just than putting someone in jail for five years for selling seeds.

Equal protection under the law has nothing to do with the way you're stretching it. The constitution is just the best they could come up with at a time when there were no cars or nuclear bombs or terrorists blowing themselves up in public. You can't expect 100 year old laws to suffice for modern America.

This white crook had the right to run for congress before his law breaking and do what every other congressman is allowed to do. If you are not a doctor, you may not prescribe drugs without inviting a lot of legal trouble should you get caught.
"Equal protection under the law" doesn't happen anywhere because juries can see your face and become staunchly prejudiced before they've sat down to begin listening to the trial.

Republicans just don't like putting white Christians in jail.


RE: As far as I'm concerned..
By tonyswash on 8/12/2014 12:56:22 PM , Rating: 1
quote:
Excuse me, but I've consistently argued for the decriminalization of recreational drugs.


Out of interest - what ones do you use. Only asking so I can avoid them.


RE: As far as I'm concerned..
By Reclaimer77 on 8/12/2014 1:22:51 PM , Rating: 6
Oh Tony you don't need drugs, you get high on Apple


RE: As far as I'm concerned..
By tonyswash on 8/12/2014 2:37:47 PM , Rating: 3
quote:
Oh Tony you don't need drugs, you get high on Apple


They make a nice strain called iWeed :)


RE: As far as I'm concerned..
By Reclaimer77 on 8/13/2014 9:31:31 AM , Rating: 3
LOL iWeed. Okay that got a 'lol'.


RE: As far as I'm concerned..
By room200 on 8/12/2014 6:37:20 PM , Rating: 1
Okay, that was actually funny despite the fact I can't stand you.


RE: As far as I'm concerned..
By FITCamaro on 8/12/2014 7:21:26 AM , Rating: 3
He never even mentioned white people. You did.


RE: As far as I'm concerned..
By Reclaimer77 on 8/12/2014 10:14:50 AM , Rating: 2
Those two are probably so ignorant they think "white collar" implies a race lol.


RE: As far as I'm concerned..
By EricMartello on 8/12/2014 2:06:30 PM , Rating: 2
quote:
Yeah, the prisons are jammed up with white middle class men...... Oh wait.


Because the majority of crimes are being committed by white middle-class men.... Oh wait.


RE: As far as I'm concerned..
By room200 on 8/12/2014 6:42:23 PM , Rating: 2
Please. I would venture a guess that 99% of all white collar crimes that cost many hundreds of millions of dollars are committed by white men and NEVER get counted in crime statistics. White guys go to black neighborhoods all the time to buy drugs. When they're caught, they get a wink and a nod from police and are sent home. The police almost NEVER arrest them. That too never gets counted in the statistics. Black guy buys crack, goes to jail for years. White guy buys cocaine, gets slap on the wrist. It's life.


RE: As far as I'm concerned..
By EricMartello on 8/12/2014 11:48:12 PM , Rating: 1
That's a non-interesting theory with absolutely zero basis in fact.

Nobody is getting locked up for possessing small quantities of drugs, and the ones who do possess enough to qualify for an "intent to sell" charge are brought in regardless of race.

Even going by your example, the people selling the drugs are obviously going to have a larger quantity of drugs on them than the buyers...it's generally more productive to pursue the sellers rather than the buyers.


RE: As far as I'm concerned..
By flyingpants1 on 8/13/2014 2:46:41 AM , Rating: 2
quote:

Nobody is getting locked up for possessing small quantities of drugs


I just laughed so hard that I banged my forehead off the desk.


RE: As far as I'm concerned..
By EricMartello on 8/13/2014 1:24:33 PM , Rating: 2
quote:
I just laughed so hard that I banged my forehead off the desk.


Eeew, who got stuck cleaning up all the sh1t that spilled out?

The only thing that's funny is people who actually believe the false claim that jails are full because any people, let alone blacks, are being locked up for possessing small amounts of recreational drugs and nothing else.

Meanwhile, keep ignoring the fact that while blacks make up less than 20% of the total US population, they are responsible for more than 50% of the crimes committed, not counting drug-related crimes.

Time to stop blaming and start taking personal responsibility.


RE: As far as I'm concerned..
By room200 on 8/13/2014 9:38:07 PM , Rating: 2
I know right? That comes from living a life of white privileged and thinking everybody gets the same chance as everyone else. He demonstrates the problem.


RE: As far as I'm concerned..
By EricMartello on 8/14/2014 9:02:47 PM , Rating: 2
quote:
I know right? That comes from living a life of white privileged and thinking everybody gets the same chance as everyone else. He demonstrates the problem.


The fact is that all Americans have equal opportunity to advance themselves under the law, and that is the extent of how far the government should be involved - anything more and you're asking for preferential treatment for certain categories of people...which actually is unfair.

You're actually suggesting that everyone should have equal outcomes regardless of the effort they put in and that is simply not going to happen. Success comes to any person who earns it; it is not an entitlement.

Making issues of race where there are none is the rallying cry of the liberal bigots who know they can't deal with the real problems facing the world today. Liberals are so irrelevant that they need to invent issues to champion, such as climate change, war on women and identity politics.

One thing Obama did that I must thank him for is blatantly proving that liberalism and its "ideology" is toxic to America and needs to be eradicated.


RE: As far as I'm concerned..
By room200 on 8/14/2014 12:16:34 AM , Rating: 2
quote:
The Drug Policy Alliance is committed to exposing disproportionate arrest rates and the systems that perpetuate them. We work to eliminate policies that result in disproportionate incarceration rates by rolling back harsh mandatory minimum sentences that unfairly affect urban populations and by repealing sentencing disparities. Crack cocaine sentencing presents a particularly egregious case. Since the 1980s, federal penalties for crack were 100 times harsher than those for powder cocaine, with African Americans disproportionately sentenced to much lengthier terms. But, in 2010, DPA played a key role in reducing the crack/powder sentencing disparity from 100:1 to 18:1, and we are committed to passing legislation that would eliminate the disparity entirely.


http://www.drugpolicy.org/race-and-drug-war


RE: As far as I'm concerned..
By Reclaimer77 on 8/13/2014 8:19:36 AM , Rating: 2
Wtf is this, the 1960's all over again? Your race baiting needs a serious adjustment. Your rhetoric is offensive and tiring, you should be banned.

So it's all just one big giant conspiracy on the part of the police nation wide to lock up black people and ignore white people who outright break the law?

What's funny is that by believing that, YOU are the racist here.


RE: As far as I'm concerned..
By room200 on 8/17/2014 9:33:35 AM , Rating: 2
You are such an idiot and have watched Faux News so much that you think that pointing out facts (which people like you are averse to) equals race-baiting. No, I won't be banned; I now exist to irritate you and call you out on your stupidity. You like to keep posting hateful nonsense (and creating multiple accounts) I'm going to keep calling you out on it. Furthermore, I pointed you to facts that you cannot dispute, and it now pisses you off. F*ck you.


RE: As far as I'm concerned..
By NunyaBidness on 8/13/2014 1:25:40 AM , Rating: 1
It ought to be filled with bankers. Instead, they throw out bones to distract the stupid ones like you. 'Idiot' is barely the tip of the iceberg.


RE: As far as I'm concerned..
By retrospooty on 8/12/2014 8:51:35 AM , Rating: 1
"It's no wonder we have the highest percentage of our population in prisons. White collar BS crimes like this - See more at"

Agreed, the amount of people we have in prison is beyond ridiculous... But actually more than 1/2 of the prison population is for drugs and drug related trafficking crimes. The over swelling of prisoners is 100% due to the drug trade.


RE: As far as I'm concerned..
By drlumen on 8/12/2014 12:15:00 PM , Rating: 2
Normally, even if I don't agree with your viewpoint, I can understand the reasoning.

You've lost me on both accounts for this issue. I don't agree nor can understand your viewpoint. Especially after the recent mortgage fiasco. Tighter reigns need to be put on laws like this - not relaxed.


RE: As far as I'm concerned..
By someguy123 on 8/12/2014 2:27:21 PM , Rating: 2
How exactly do you think the stock market works? They basically stole from other traders who ride purely on speculation. To make decent money in the market, someone else needs to lose even more. It is also illegal, so he didn't "game" anything, he just broke the law. What you're saying is equivalent to "Who cares if he used marked cards? He just gamed this BS holdem table." Government hypocrisy doesn't negate the law. If it did I'd be out wiretapping every company with a ticker. They are all in the wrong here.

Also, it's pretty easy to notice an unusually high volume purchase/dump (hell trader software automatically reports unusual volume). Likely that the proof was obtained illegally or under some unconstitutional loophole, but they wouldn't need to do anything underhanded to notice unusual activity.


RE: As far as I'm concerned..
By FITCamaro on 8/12/2014 7:24:00 AM , Rating: 3
Yup. Nearly all Congressman leave office far wealthier than they came in. Because they pass legislation that can help or hurt companies. And they know which companies it will help or hurt. So they buy and sell based on the legislation they know will pass. And it's all completely legal.

I think Congressman, as long as they sit, should be barred from stock trading. Sure they can have their retirement accounts the same as the rest of us. But they should be stopped from being able to profit from their insider knowledge of the passage of legislation.

Of course they're not going to pass a law that says that. Hence why we need an Article V convention.


RE: As far as I'm concerned..
By EricMartello on 8/12/2014 2:20:18 PM , Rating: 2
quote:
Nearly all Congressman leave office far wealthier than they came in. Because they pass legislation that can help or hurt companies.


It's called "cronyism", and don't refer to it by the liberal moniker of "crony capitalism" because it has nothing to do with capitalism. In fact, cronyism is a built-in component of socialism as it relies on giving beneficiaries resources controlled by the state so long as beneficiaries ensure the "friendly" politicians stay in power.

How it works:
----------------

1) Campaign Donor gives $1-10M dollars each to campaigns of politician A and B.

2) Either politician A or B wins - it does not matter who. Once in power, said politician drafts new legislation or supports proposed legislation that benefits the top donors.

3) Alternatively, politician ensures that the top donor ends up with a high-paying taxpayer-funded contract worth 10 to 100 times the initial campaign donation.

The "green economy" is basically a vehicle for cronyism, operating under the pretense of investing in companies that 'help the environment' with their products. The government should not be investing in any industry, but they have been for ages and it has had a net detrimental effect on the economy.

The best way to curtail this is to reduce the size, scope and power of the federal government while simultaneously increasing the governing powers of individual states...in other words, preventing the consolidation of power that we currently have in DC.


RE: As far as I'm concerned..
By sld on 8/12/2014 9:57:15 AM , Rating: 2
When men decide there is no higher Law, then the highest law we have is whatever the government says is law.

This will rankle, and will earn downvotes, but I will leave it to the honest intellectual to wrestle with this reality.


RE: As far as I'm concerned..
By Reclaimer77 on 8/12/2014 10:04:15 AM , Rating: 2
Yes if only everyone were Christian, then insider trading would be a thing of the past...

/S


RE: As far as I'm concerned..
By Nightbird321 on 8/12/2014 1:15:53 PM , Rating: 2
Impossible to achieve solutions are the best, isn't that obvious?


By chizow on 8/11/2014 10:21:34 PM , Rating: 3
quote:
But in April 2012, cash-strapped by his 7- and 4-year-old's private Christian school tuition bills, Mr. Jorgenson made a fateful decision.


Really? Is private Christian school really necessary at the age of 4-7?

This guy made $130K and his house only cost $283K in a relatively cheap part of the country. He should've been living like a king if he wasn't squandering it away on private Kindergarten tuition.




By someguy123 on 8/12/2014 12:44:03 AM , Rating: 2
The tuition is probably just a lie to hide his real spending. Makes no sense at all, especially considering his past work experience. Guy should be swimming in money relative to his expenses. Cocaine is pretty expensive.


By chizow on 8/12/2014 10:05:51 AM , Rating: 1
Private school tuition is expensive as hell, where I am, it is ALMOST as much as college tuition and that's not even for boarding school.

It makes perfect sense, this guy is talking about this being a lesson from God to cure his Greed but in reality, it's just another example of religion being the problem in the first place for making him feel as if he needed to send his kids to a private Christian school to begin with.


By someguy123 on 8/12/2014 11:52:58 AM , Rating: 2
Average private tuition in washington is about 10 grand. Lets say he goes a little crazy and finds a 30 grand yearly private school with 15k~ in expenses for both of his kids. Still manageable on his salary, especially with his house being so cheap, and his past jobs were also normally well paid positions, so you'd think he'd have a little money in storage. Unless he flies his kids to new york every day I don't see how he can blame tuition fees.


By chizow on 8/12/2014 12:01:06 PM , Rating: 2
Right, so even if he's paying $12K per year per kid, that's $1K per month, figure his take home is around 85K after taxes (7K per month), that's $2K in tuition, 2.5K for his mortgage, leaving only 2.5K for everything else. Of course he's a borderline zealot and like any good zealot he's going to tithe at least 10% of his income, so that's another $700 to $1K gone per month. 1.5-1.8K per month for a family of 6 just isn't a whole lot, sorry. Put that 2.4K back into the equation and he's living like a king out there.


By someguy123 on 8/12/2014 2:38:14 PM , Rating: 2
That's a really high mortgage rate considering his job history and house value. Maybe he did take a short mortgage term, but his hire at microsoft was pretty recent (2011), so it still seems pretty crazy to me that he would balance out his costs to a monthly rate even higher than his salary. I agree that what you're saying is possible, but his experience is specifically in financing and cost management, which make me doubt that he unintentionally put himself into the negative. I just don't see this happening without a significant outside cost.


By FITCamaro on 8/12/2014 7:34:44 AM , Rating: 1
So now not wanting your kids to go to crappy public schools is a bad move?

My parents made probably around $70-90,000 combined when I was 4-7 and we went to Catholic private school as well(3 of us). Yes that meant we didn't have nice cars, or lots of new clothes, or expensive vacations. But I'm grateful my parents prioritized our education over all else. I saw the results of the public schools in our area. Kids who could barely read and do math. Who thought cursive was another language. And with what they're wanting to teach kids today at that age in public schools, I definitely don't blame them. I don't want my kindergartener to be learning about gay sex and bondage.

Yes it does seem like this guy might have been spending his money poorly. But not on education.


By chizow on 8/12/2014 10:11:59 AM , Rating: 2
Yes its a bad move if it forces you to live beyond your means and engage in insider trading, thus costing you a job and jail time.

What do you think these kid's lives are going to be like now that their father is in jail and they are living on welfare? 4 kids. No father, no income. Wife will probably leave him because this guy won't be able to get a decent job again. Maybe his church will save him, pay his bills and care for his children?

Blaming public schools for shaping a child's mind is just a crutch, it's still on the parents to steer their children and this works just fine for millions who matriculate through the public school systems without needing to go to private religious schools. It's not like he's in the inner city or anything, he's out in Redmond where every school is probably named after a different Microsoft executive and well funded by the local economy and affluent residents.


By Reclaimer77 on 8/12/2014 11:17:52 AM , Rating: 1
quote:
and this works just fine for millions who matriculate through the public school systems


AHAHAHAH!!! Yeah it's working just fine for America. AHAHAHH!!!!!

Oh shit man, funny stuff.


By chizow on 8/12/2014 11:53:43 AM , Rating: 2
The US is still in the top 10 for most educated countries in the world by virtually any metric.

http://247wallst.com/special-report/2013/10/15/the...
http://www.therichest.com/rich-list/world/great-gr...

Sure we could improve in the areas of science/math relative to the rest of the world and there have been a lot of initiatives focusing on those weaker areas, but it doesn't change the fact we still have some of the best public schools in the world.


By room200 on 8/12/2014 6:44:50 PM , Rating: 2
That's not what Fox says.


By Dr of crap on 8/12/2014 12:31:17 PM , Rating: 2
WOW!
I'm not saying you're wrong, or calling you a lair, but I hear people saying things about public schools all the time and I just don't get it.
Don't know about the rest of the country, but here the public schools are just fine, think you. My 2 kids did fine. Now, yes we live in the bubs, and I hear bad things about the inner city schools, but this doesn't apply to this guys family.
I just wonder why the schools, LET things like you describe happen. No way any kid in my kids schools could have passed kept going through school without being able to read, write, and do math, and higher math for that matter.

Just adding my two cents, and being confused about some public schools out there.


By Nutzo on 8/12/2014 2:05:16 PM , Rating: 2
Where I live the public schools are considered good, and based on the ratings are probably in the top 10% in the state.

However we still sent my kid went to a private school the first couple years. She has been home schooled the last few years, both to save money and to give her more customized schoolwork.

Among her friends, it's easy to tell the kids that went to public schools. Not calling them dumb, but it's amazing how much less they seem to know, and how much more they are caught up in popular culture.

The homeschool program we are involved with is affiliated with a local school, so my kid still takes the national testing. Her average score is the mid/upper 90's. I doubt she would be testing that high if she went to public school.


By Annie22 on 8/13/2014 9:42:21 PM , Rating: 2
Please don't believe everything you read............this is the ONLY article covering this story trying to say....it was to pay for Christian school.............SIMPLY not true....they are just twisting crap around......these are not facts you are reading...........just one stupid blogger that doesn't know what the hell they are talking about....


By Annie22 on 8/13/2014 9:54:39 PM , Rating: 2
AND as i read through the article............I found 10 things that are completely UNTRUE.............not at all surprising but out of ALL the coverage I have read on internet, in print, etc.....this story is the absolute worst...so far from the true facts...........utter, outright lies.
BTW.........no community service was ordered even though the article said so........BUT he has been doing providing service in the community for the last 8 months on his own accord..........not because anyone suggested or ordered it.....but let us not mention any of that stuff in article....or perhaps all the good stuff the judge had to say to him in courtroom.........NO....let's just depict him as some evil criminal mastermind........NONE of you know this man....I make NO excuses for what he did....he will pay the price for the crime but for you all to sit in judgement......well, for those in glass houses...remember about throwing stones...


By Etsp on 8/14/2014 4:06:08 PM , Rating: 2
That...post...gave...me.......asthma.


WOW!
By room200 on 8/12/2014 12:31:17 AM , Rating: 1
It's amazing the number of people here excusing white collar crime. This is part of the problem. This @sshole broke the law and should go to jail like anyone else.




RE: WOW!
By FITCamaro on 8/12/2014 7:38:19 AM , Rating: 3
The issue is that do we really want to take productive, tax paying people out of the workforce and put them in jail for what, while yes a crime, is one that had no victim. They made some money through inappropriate means. They didn't steal it from anyone or cause anyone else to lose anything. I'm not saying the crime is ok. I'm saying why put these guys in jail where they become a burden on society and their families likely go on welfare.

I feel the same way about many small time drug offenses(minor possession of marijuana and such). Now yes if you keep breaking the law, you should go to jail.


RE: WOW!
By titanmiller on 8/12/2014 8:26:25 AM , Rating: 4
The best punishment for crimes like this is a financial hit. Some white collar crimes with identifiable victims need jail time, but most need steep fines.


RE: WOW!
By TSS on 8/12/2014 7:57:12 PM , Rating: 2
That's not how economics works yknow. They did steal money from somewhere - it's just not easily indentifyable where it was stolen from.

You could say it was stolen from the people who would've otherwise bought the options that where now unavailable. Or the companies offering those options lost out on alot of money offering those options if untaken after the news was brought out. It is still theft, just an obscure one - as in none of us knows the implications of the one theft.

If it really was a victemless crime then it shouldn't be a crime and everybody could do it. Like the big banks or the government *cough*. There's no way that could lead to any bad situations since nobody would be a victem, right?

The problem isn't this person going to jail. It's the other people *not* going to jail for the same thing.

It's also kind of a problem you manage to contradict yourself multiple times in the same post and get rated up for it (if it has no victem why is it a crime, if the means where inappropriate most resembling theft how is it not theft, if crime isn't ok why is a "victemless" crime ok, if being on welfare is a burden on society why isn't commiting a crime, if this guy breaks the law repeaditly (3 times no less) why shouldn't he go to jail even if you say repeat offenders should go to jail?).


RE: WOW!
By Annie22 on 8/13/2014 9:55:59 PM , Rating: 2
I agree!


RE: WOW!
By flyingpants1 on 8/17/2014 10:37:15 PM , Rating: 2
quote:
The issue is that do we really want to take productive, tax paying people out of the workforce and put them in jail for what, while yes a crime


No, of course not. Laws do not apply to white people.


OUTRAGEOUS!!!
By NunyaBidness on 8/13/14, Rating: 0
RE: OUTRAGEOUS!!!
By 02david on 8/13/2014 7:38:56 PM , Rating: 2
The images were used under fair use not stolen. The photos were referenced to their original source and the faces were blurred. This was the correct procedure for using images. Once the photos were posted to facebook the rights of to image posted on facebook belong to facebook. Only the original image belongs to the owner.


RE: OUTRAGEOUS!!!
By Annie22 on 8/13/2014 9:34:19 PM , Rating: 2
REGARDLESS....pathetic that pics were posted of the wife & kids....this is NOT necessary.....it would have been better to completely eliminate the reference of WHERE they were obtained. Unfortunately, only cover & profile pics on FB cannot be private & that is WHAT these are/where and how they were extracted from FB. They were also PROFESSIONAL pics taken which permission was granted to the FB acct holder to post. I doubt that DAILY TECH has obtained permission to post them from the professional photographer. And therefore, there might be some copyright infringement now............trust me, it will be investigated....should be noted.....Daily TEch was kindly asked to remove the pics from the blog but OBVIOUSLY........they do not care about innocent people...YES,,,,,the wife & children are innocent...they did nothing wrong & ridiculous that pics are in this article. What next??? Pics of other family members & friends?? How about a pic of the christian school the children go to?? I am disgusted with the whole thing. I have more respect for the 100+ other stories on internet that did not stoop to this level of plastering pics of this guy's family.


RE: OUTRAGEOUS!!!
By 02david on 8/14/2014 5:12:40 PM , Rating: 2
The images had to be referenced to comply with fair use. Dailytech do not need to get permission to use the images since the are a news organisation they only need to reference the image to the original source.

"§ 107 · Limitations on exclusive rights: Fair use
Notwithstanding the provisions of sections 106 and 106A, the fair use of a copyrighted work , including such use by reproduction in copies or phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting , teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright."
http://www.copyright.gov/title17/

I understand other members of the family may not have committed any crimes and they are unfortunately going to be caught in the crossfire but dailytech were not responsible for any crimes committed and neither is the author of the article.

If anyone want to punish dailytech the best thing you can do is to stop visiting their site and convince some of the people you know not to visit their site either. That will take away some of their advertising revenue.


RE: OUTRAGEOUS!!!
By Annie22 on 8/14/2014 5:46:46 PM , Rating: 2
My very LAST response to all of this regarding your usage of pics of the wife & kids are simply that it was NOT necessary for coverage of this story. And I do not agree with your comment regarding the wife & kids, "they are unfortunately going to be caught in the crossfire" YOU DECIDED to create the crossfire you speak of.

You are the ONLY one that has chosen to use photos in this capacity to report/comment on this story. I find it tasteless & completely unnecessary. There are over 150 stories covering this on internet & in papers. NONE of those sources chose to put pics of family in their coverage. Also, your coverage has so many inaccuracies in it which indicates Daily Tech is inadequate in obtaining facts so perhaps you should research more thoroughly when you decide to post stories about events.

That being said............your level of reporting/blogging is pathetic.


RE: OUTRAGEOUS!!!
By 02david on 8/14/2014 6:45:38 PM , Rating: 2
quote:
And I do not agree with your comment regarding the wife & kids, "they are unfortunately going to be caught in the crossfire" YOU DECIDED to create the crossfire you speak of.


I have no affiliation to the dailytech staff. I just read the story here then the comments. I never created anything of the sort. I must also add that I never said I agreed with nor disagreed with the use of those images in the article.

When I first commented I was only correcting 'NunyaBidness' allegation that dailytech and the author had broken the law. I don't think they have and I don't think the allegation would hold up if it ever went to court. I do understand why people find the inclussion of certain photgraphs distasteful however I also understand that as a news organisiation they're purpose is to report on events that may be newsworthy.

Unfortunatly when people break the law they either do so with no consideration of their family or they do so with consideration but make the decision that the risk of damaging the family unit and harming family members is worth it. I would not willingly destroy my own family unit to make a bit of cash. In my opinion money is less important than family, particularly children, partners and parents, and as such I would not place money ahead of the people I love.

I have occasionally been upset myself in regard to certain content (not specifically this site but in general) but I do understand that sometimes I just need accept it and move on to far better content. I wish only lawbreakers suffered the consequences but that's just not the case and other people unfortunately suffer as well.

Alas it is always the innocent who suffer.


Nothing was stolen from anybody?
By lachbus on 8/12/2014 11:18:24 AM , Rating: 3
I'm surprised about some people believing that this kind of crime doesn't cost anybody anything. For every trade there's a buyer and a seller folks. If I sell something to you when only I know that it will fall in value a few days later, I get an unfair price and effectively steal your money. If I buy something from you for a lower price than is fair (given my insider information) I steal your money just the same.
Many of you guys have probably index funds and 401K etc. He stole from all of us, so his kids can go to a Christian school. Leading by example...
Sure it's known and a shame that politicians do it with impunity. That doesn't make it right. CEOs, key players in companies, they all cheat this way as much as they can. The idea of those laws is to reduce it, deter from it, make it difficult. Arguing against rules because some people break them makes not a lot of sense.




Dream family ?
By Gondor on 8/12/2014 2:07:44 AM , Rating: 2
Hardly a dream family - their faces are all smudged and washed out.




I have a better solution.
By Sam07 on 8/12/2014 2:17:09 AM , Rating: 2
Instead of sending people like this to prison how about giving them an equivalent amount of time in community service or if jail time is two years, give the guy 1,672 hours of community service instead (16 hours every weekend for two years exact).

Otherwise this guy is going to a minimum security prison for two years which is a waste of tax money.




By Annie22 on 8/13/2014 1:58:20 AM , Rating: 2
Was it really necessary to splash pics of his wife & kids in this article? Did it add any value to your coverage/opinion of the story. You are really pathetic....this story has been covered by over 100 news agencies and NOT ONE of them did this. At least they showed some respect for his wife & children. How dare you put them on public display?? They did nothing wrong.




By strapmonkey on 8/12/2014 12:16:16 AM , Rating: 1
....I myself was convicted of a class 3 felony for the princely sum of $433 of "misappropriation". I did my professional duty, the feds didn't like some very unflattering things I had to say about the illegal, immoral and unethical behavior of their employees, with whom I worked in a contracting capacity, and so, the squeaky wheel got greased. No prior criminal convictions, I'm a licensed health care professional (still in good standing, which should tell you something about the veracity of the federalists' assertions) performing my duties in accordance with state and federal law, and they come for me. Not the malpractice and neglect in their health clinics, not the $100,000's of medicare/medicaid fraud, not the abuse of authority by federal employees, just for me.

Land of the free my ass. What better way to deprive you of your creator endowed rights than to brand you a criminal. To paraphrase Tommy Chong "You'll find out what prison is like. Every single one of you will find out before they're through". God help us, he is right.




Theft
By NunyaBidness on 8/13/14, Rating: 0
"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference













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