Laksha Bohra, a former Finance Manager at Amazon and two of her family members have been charged with insider trading by the United States Securities and Exchange Commission (SEC). According to a press release from the financial regulator, the US SEC has filed a complaint against these three of them in the U.S. District Court for the Western District of Washington.
Her husband Viky Bohra and her father-in-law Gotham Bohra are two other family members of Laksha Bohra that were involved in insider trading and they are also charged by SEC as well.
The Whole Story Behind This
According to the press release, the former Finance Manager at the multinational technology giant Amazon, Laksha Bohra has been working in the tax department of Amazon as a Senior Manager. Her job was to prepare and review calculations that were used for finalizing numbers involved in the quarterly and annual earnings of the firm.
SEC says in the complaint that Laksha Bohra allegedly acquired highly confidential information regarding the financial performance of the company during the period between January 2016 and July 2018. She, then, passed on this piece of secret information to her husband Viky Bohra.
In the complaint, SEC claimed that Viky Bohra then traded on this confidential information of the company along with his father Gotham Bohra in eleven different accounts which were then managed and maintained by some members of the Bohra family. Furthermore, the complaint alleges that an amount of $1.4 million in profits was made by the family by trading unlawfully in Amazon securities.
As per the complaint of SEC, Laksha Bohra, Viky Bohra, and Gotham Bohra have violated “Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder”.
Furthermore, the SEC stated in the press release:
“All three Bohras have consented to the entry of final judgments permanently enjoining them from further violations of the charged provisions, and ordering them to pay total disgorgement of $1,428,094, total prejudgment interest of $118,406, and total penalties of $1,106,399.”