Husband of Amazon employee sentenced to prison for insider trading Amazon stock

Post by wolfretcrap » Fri, Jun 11, 2021, 5:27 AM UTC

lizdax wrote: post #2

>he obtained from his wife, an Amazon finance employee, to place trades in Amazon stock–making a profit of $1,428,264 >Bohra engaged in illegal insider trading in advance of 11 straight earnings announcements.” >He and his family members have paid $2,652,899 in disgorgement, interest and penalties. And 26 months in prison! This is why if you're going to do any kind of trading yourself -- never touch the company you w…

Post by DevKoala » Fri, Jun 11, 2021, 5:30 AM UTC

birken wrote: post #120

camjohnson26 wrote: post #79

Earlier quoted context omitted.

They made a killing on Tesla calls for one, million dollar investment. https://newsthud.com/disclosure-fillings-reveal-pelosi-purch...

It looks like her TSLA stock is down from when she purchased it, because there is no corresponding sale and TSLA is trading for less than it was on 12/21/2020 (and has been for the last month... the disclosure period for trades). So instead of purchasing an index fund, which would be up 10% since 12/21/20, she purchased TSLA which is down ~5%. So this trade underperformed the market by 15%, which seems like it is a h…

Post by viraptor » Fri, Jun 11, 2021, 5:31 AM UTC

dheera wrote: post #70

refurb wrote: post #56

Earlier quoted context omitted.

I have no doubt the SEC has a bunch of rules they use to flag suspicious transactions. The data analysis spits out a few names and they follow up in person to see who lawyers up and who cracks under pressure. It's also why Matt Levine's "rules of insider trading" includes "Don’t do it by buying short-dated out-of-the-money call options on merger targets". Certain transactions are suspicious as hell, especially when t…

I don't understand why "wife" has any legal bearing on this. What if it was a girlfriend? What if it was a friend? What if it was some random dude on reddit?

Post by ForHackernews » Fri, Jun 11, 2021, 5:37 AM UTC

wolfretcrap wrote: post #141

lizdax wrote: post #2

>he obtained from his wife, an Amazon finance employee, to place trades in Amazon stock–making a profit of $1,428,264 >Bohra engaged in illegal insider trading in advance of 11 straight earnings announcements.” >He and his family members have paid $2,652,899 in disgorgement, interest and penalties. And 26 months in prison! This is why if you're going to do any kind of trading yourself -- never touch the company you w…

If simply being husband of a woman who works for Amazon can help you acquire such information on which you can perform insider trading. What stops from former workers at intelligence agencies from starting a hedge fund and employing all methods they learned while at work, to acquire such valuable information, trade based on that and offer others money management services?

Post by nindalf » Fri, Jun 11, 2021, 5:42 AM UTC

unishark wrote: post #129

whymauri wrote: post #112

Earlier quoted context omitted.

>Millions of investors do that with no problems. Err, example please? I'm totally blanking here, not gonna lie.

If you are an insider at a company you work at, they tell you and you have to adhere to additional rules and blackouts around announcement and earnings time. This is not common. In the story, the guy's wife worked in finance so had confidential info about earnings. The rank and file can trade whenever the hell we want with whatever stock we want, including our employer's. No one bats an eye.