The former Nasdaq managing director who pleaded guilty earlier this year to insider trading, was sentenced to 3-1/2 years in prison.  Donald Johnson, who took down an annual salary of $141,000, admitted to making $641,000 in illicit profits by trading on insider information he gleaned on the exchange. As part of his job as managing director, Johnson consulted with companies that had market-moving news.  Authorities said there is no indication that any companies that Johnson illegally profited off of had any knowledge of his actions.

Johnson admitted to 8 separate insider trades between 2006 and his retirement in 2009, though regulators tied him to a 9th trade that the boosted his profits to over $750,000.   His 42-month sentence fits right in the middle of the 37- to 46-month range specified by sentencing guidelines.  Johnson also was legally barred from the industry.   [AP, 8/12/11]