The United States Securities and Exchange Commission (SEC) reported Amazon senior manager and two other family members. SEC reported them that they involved in insider trading transactions they did several years ago.
Managed to earn $1.4 million
Based on Bloomberg, senior manager at Amazon’s tax department Laksha Bohra (36) did have access to classified information before the announcement of official company income reports was reported to the stock exchange.
Using this information, Laksha Bohra together with her husband and father-in-law managed to raise US $ 1.4 million. The Bohra family has not denied the allegations, and also face criminal charges from the US Department of Justice.
The SEC also shared details of the scheme and outlined Laksha Bohra and her family’s offenses in a release on Monday (28/9) yesterday.
Bohra uses 11 different accounts for insider trading
The SEC describes how the family uses 11 different stock trading accounts. Bohra gained access to Amazon’s classified information in his role of overseeing financial data. It related to the company’s transfer pricing operations in various countries.
Amazon has also repeatedly warned that it is illegal for someone in a position (amazon manager) to buy and sell company shares.
Bohra’s family used inside information to buy and sell Amazon stock for the purpose of making a profit.
From January 2016 to July 2018, Bohra allegedly informed her husband, Viky Bohra and father-in-law, Gotham Bohra. She informed the company’s financial performance before Amazon officially announced the information.
Amazon itself stopped Bohra in 2018 because of his insider trading. The company declined to comment on the SEC announcement.
Read also: Insider Trading: A Form of Illegal Trading