SEC charges former Amazon finance manager and family with insider trading

Post by jakupovic » Mon, Sep 28, 2020, 10:01 PM UTC

Post by [deleted] » Mon, Sep 28, 2020, 10:02 PM UTC

notional wrote: post #8

As alleged, the family reaped illicit profits of approximately $1.4 million from their unlawful trading in Amazon securities. Did anyone really need insider information to know Amazon stock was going to rise? Although $1.4 million is life changing amount of money, I feel like for these people who were already being generously compensated in Amazon stock, it probably wasn't worth the risk, especially given the quote b…

Post by raincom » Mon, Sep 28, 2020, 10:04 PM UTC

mikestew wrote: post #15

Topgamer7 wrote: post #7

1.4M in profits? Doesn't that seem like chump change? Like if you had insider information couldn't you buy options a make much more? Assuming your info was guaranteed to play out predictably. And if it wasn't is it really any better than general speculation?

Ah, the Bohra family was smart, you see. If they only traded out-of-the-money options, and only in “small” amounts, the SEC computers (which have nothing better to do all day...) will never catch on!

Post by itake » Mon, Sep 28, 2020, 10:05 PM UTC

advisedwang wrote: post #3

curiousgal wrote: post #2

How did the SEC figure this out? Do they monitor the accounts of all financial employees' relatives?

The complaint [1] includes quotes from the brokerage and from Amazon. Possibly either Amazon or the brokerage flagged this. [1] https://www.sec.gov/litigation/complaints/2020/comp-pr2020-2...

Post by justchilly » Mon, Sep 28, 2020, 10:08 PM UTC

coliveira wrote: post #10

It is funny that high management is never considered to be doing illegal insider trading (except for obvious missteps), but they're the ones responsible for capital allocation, stock/option grants, and all kinds of decisions that will impact financial results in the next quarter.