Nvidia Securities Fraud Trial Begins

Nvidia Corp. engineer Robert Prevett illegally made $595,000 on stock trades before his company announced a contract to provide graphics chips for Microsoft Corp.’s Xbox video game system, prosecutors said.

“The evidence will show Mr. Prevett got so wrapped up in the stock market that he couldn’t resist trading,” said Assistant U.S. Atty. John Hemann in an opening statement in Prevett’s insider trading trial.

Prevett is the only one of 11 Nvidia employees charged with securities fraud last November to go to trial. He faces two counts of insider trading and one count of illegally passing stock tips to his then-girlfriend and her father. If convicted, Prevett faces up to 10 years in prison and a $1-million fine.