WASHINGTON (Reuters) – The Securities and Exchange Commission on Monday accused a former financial manager at Amazon.com, Inc. and two of his family members of insider trading ahead of the company’s earnings announcements between January 2016 and July 2018.
The SEC said Laksha Bohra, who served as a senior manager in Amazon’s tax department, acquired and tipped her husband Viky Bohra with highly confidential information on Amazon’s financial performance.
The complaint alleges that Viky Bohra and her father, Gotham Bohra, later exchanged this confidential information, reaping illicit profits of approximately $ 1.4 million.
The SEC complaint, filed in the Seattle federal court, accuses all three Bohras of violating the anti-fraud provisions of federal securities laws. They agreed to pay a total disgorgement of $ 1,428,094, total injury interest of $ 118,406 and total penalties of $ 1,106,399.
In a parallel action, the US Attorney’s Office for the Western District of Washington today filed criminal charges against Viky Bohra.
“We claim that the Bohras have repeatedly and systematically used Amazon’s confidential information for their own gain,” said Erin Schneider, who is director of the SEC’s San Francisco regional office.
“Employees with access to confidential and potentially market-moving company information cannot use that information to enrich themselves, their friends or their families,” he added.
Each of the Bohras did not immediately respond to a Reuters request for comment.
Amazon declined to comment.