The US regulator, the Securities and Exchange Commission (SEC), has charged Laksha Bohra, alongside two family members, with insider trading. Laksha Had served as the former finance manager at Amazon.com Inc.
Charges Of Insider Trading At Amazon
As the statement made on Monday detailed, the regulator had charged Viky Bohra, Laksha Bohra, as well as Gotham Bohra with insider trading. This was done in advance of Amazing announcing its earnings in the time frame of January 2016 and July of 2018.
While the multinational technology giant had employed Laksha Bohra, she had served as a senior manager of the tax department of the company. Serving this role, Bohra reviewed and otherwise prepared calculations that were used to finalize numbers for the annual and quarterly earnings reports, which were subsequently filed through the SEC.
Tipping The Husband Off
In its complaint, the regulator claims that during the aforementioned time frame, Laksha Bohra had acquired highly confidential information regarding the financial performance of the tech giant. She proceeded to tip her husband, Viky Bohra, about this information.
The complaint itself was filed within the Western District Court of Washington, and claims that both Viky Bogra, as well as his father, Gotham Bohra, made use of this confidential information to trade in 11 separate accounts.
Ignoring The Rules For Profit
As the statement made on Monday detailed, the complaint gave further allegations. These allegations are that Laksha Bohra had disregarded the reminders made quarterly, highlighting how she is prohibited from passing material nonpublic information. She is further not allowed to commend the purchase or sale of securities of Amazon. The allegations are that the family managed to reap illegal profits of around $1.4 million through the use of unlawful Amazon securities trading.
Viky, Laksha, and Gotham Bohra have all been accused of violating the Securities Exchange Act of 1934, section 10(b) and Rule 10b-5 thereunder. The complaint is seeking a total disgorgement of $1.428,094, as well as total penalties of $1,106,399 and total prejudgement interest of $118,406.
Viky Bohra, the husband of the former Amazon employee, is suffering a parallel action from the US Attorney’s Office for the Western District of Washington. Criminal charges have been filed against him in parallel with this regulatory action.
To many, committing a crime seems like a very profitable idea, indeed. In fact, some may even get away with it, but the common trend is to have everything catch up to you, eventually. With regulators like the SEC in place, this act could be discovered and prosecuted.