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Breaking News: Ex-Nasdaq Worker Pleads Guilty to Insider Trading

In breaking news CNBC's Scott Cohn says a former Nasdaq executive has pled guilty to securities fraud for insider trading.

According to the US Justice Department, Donald Johnson, reaped more than $640,000 over three years in what the government calls ill-gotten gains.

Johnson, 56, worked as a director and then managing director of Nasdaq's market intelligence desk before retiring in October 2009, according to the U.S. Attorney's office for the Eastern District of Virginia.

During his tenure at the market, Johnson was responsible for monitoring the stock of companies traded on the Nasdaq as well as providing them information and analyses about trading in their own stock.

In that position, he received advance information about companies' upcoming earnings, news releases and important personnel changes, according to court documents. Between August 2006 and July 2009, he bought and sold stocks to generate the profits.

His biggest gain, about $175,000, came in November 2007 when he used confidential information about the successful trial results for the United Therapeutics drug Viveta, now also known as Tyvaso, according to the court documents.

He faces up to 20 years in prison and a $5 million fine.


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Trader disclosure: On May 26, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karabell owns (GOOG)l Karabell owns (AAPL); Terranova owns (XOM); Terranova owns (KSS); Terranova owns (CVI); Terranova owns (OXY); Terranova owns (TM); Terranova owns (BJ); Terranova owns (DIS); Terranova owns (PFE); Terranova owns (V); Terranova owns (HPQ); Terranova owns (FLX); Terranova owns (JPM); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (VRTS); Terranova is short (DELL); Finerman and Finerman's firm own (AAPL); Finerman and Finerman's firm own (BP); Finerman and Finerman's Firm own (CMI); Finerman's Firm owns (IBM); Finerman owns (C); FInerman owns (JPM); Finerman's Firm owns (JPM) leaps and (JPM); Finerman's Firm owns (TGT); Finerman owns (UNG); Finerman's Firm is short (IWM), (MDY), (SPY); FInermans firm is long S&P Puts, Russell 2000 Puts

For Zachary Karabell
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River Twice Capital is short SPY, QQQ

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CNBC.com with wires.