Former Amazon finance manager charged with insider trading

Steffy Bogdanova
September 29, 2020 9:58 am

The Securities and Exchange Commission (SEC) charged a former Amazon.com Inc. finance manager and two family members with insider trading in advance of the company’s earning announcement between January 2016 and July 2018.

Laksha Bohra was a senior manager in Amazon’s tax department where she prepared and reviewed calculations used in finalizing the numbers included in Amazon’s quarterly and annual earnings that were filed with the SEC. The US watchdog alleges that from January 2016 to July 2018, Laksha Bohra tipped her husband Viky Bohra with highly confidential information about Amazon’s financial performance.

The Commission alleges that Viky Bohra and his father, Gotham Bohra, used this confidential information in trading in 11 separate accounts maintained by different members of the Bohra family. The SEC also claims that Laksha Bohra disregarded quarterly reminders prohibiting her from passing such material nonpublic information or recommending the purchase or sale of Amazon securities. The Bohra family reaped illicit profits of approximately $1.4 million from their unlawful trading in Amazon securities.

SEC

Erin Schneider, Director of the SEC’s San Francisco Regional Office commented:

We allege that the Bohras repeatedly and systematically used Amazon’s confidential information for their own gain. Employees with access to confidential, potentially market-moving corporate information may not use that information to enrich themselves, their friends, or their families.

The US regulator’s complaint charges all three members of the Bohra family with violating the federal securities laws. The defendants have agreed to pay total disgorgement of $1,428,094, total prejudgment interest of $118,406, and total penalties of $1,106,399.

The US Attorney’s Office for the Western District of Washington has also filed criminal charges against Viky Bohra in parallel action.

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LeapRate Analyst

Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
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