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

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

#151

Post by staplers »

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?

I'd guess the same thing that stops Senators from trading on inside knowledge of global issues.. nothing

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

#152

Post by tarsinge »

JumpCrisscross wrote: post #101
leephillips wrote: post #59

Stories like this boggle my mind. How do such people think that they are going to get away with this? If I were going to try something like this I would at least make some attempt to obfuscate my activities; trading through proxies, mixing in losing trades, something.

> How do such people think that they are going to get away with this? Many Americans think insider trading is l common than. If everyone is getting away with 70 mph, you can too. (Exhibit A: this thread.) In reality, insider trading enforcement is effective. The SEC looks for unusually profitable trades ex post facto . Their verification is easier than the insider trading. Wall Street doesn’t insider trade because it…

Hard to believe when I see https://en.m.wikipedia.org/wiki/2020_congressional_insider_t...

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

#154

Post by arp242 »

lordnacho wrote: post #139
10x-dev wrote: post #71

Having worked at Amazon, I know the employees are fully aware of blackout periods. There is no way to claim plausible deniability there. It is easier for clueless household members to get a hold of the earnings statement or unknowingly trade AMZN during blackout periods, so in some cases I can see how an honest mistake could happen. However, this guy traded 1.5M 11 times during blackout periods ahead of earning state…

I think people simply don't appreciate that it's an easily caught crime. Most illegal things that one might do won't ever be caught, eg you break into someone's house and it would take the police to bother investigating and then put enough effort into that one case. Or to stay in white collar you might forget to report some income, how's the tax man to know unless you are already in focus? With insider trading the in…

How do they know his wife worked for Amazon? Is this recorded? Or do you need to declare stuff like that?

I don't know anything about trading; in naïve view would be that unless they have quite a bit of information about you that's not necessarily all that easily obtainable, it's not always so easy to detect?

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

#156

Post by lightgreen »

spoonjim wrote: post #24

Insider trade a million, you’ve got a problem. You have to insider trade a billion so that you’re untouchable. This is probably the hourly volume of insider trading at many hedge funds like SAC.

> You have to insider trade a billion so that you’re untouchable.

Some source of that? I believe that is not true. Other shareholders don't really want managers to profit from insider trading.

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

#157

Post by pawelos »

lizdax wrote: post #137
nradov wrote: post #37

Earlier quoted context omitted.

There's nothing illegal about trading your employer's stock if you don't have access to insider information. Millions of investors do that with no problems.

Adding a note, according to the initial filings from the SEC: >As further explained in Amazon’s Insider Trading FAQs, “puts, calls, warrants and other types of option securities” were required to “be cleared in advance with the Legal Department, regardless of whether that employee is otherwise subject to preclearance or to the trading window, even if that employee is not in possession of material nonpublic informatio…

> puts, calls, warrants and other types of option securities

These are not stock. You definitely don’t need Amazon Legal approval to trade Amazon stock - otherwise all employees that get RSUs would need approval to sell their stock.

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

#158

Post by lightgreen »

antonzabirko wrote: post #108

This man sent to jail. How many politicians were sent to jail for covid insider trading? What about the billions Jeff Bezos fleeced in taxes? It's the rich man's world, where justice is only onto the poor.

> How many politicians were sent to jail for covid insider trading?

What is covid insider trading?

> What about the billions Jeff Bezos fleeced in taxes?

I believe Jeff Bezos did no violate the law, but that's really offtopic here.

> It's the rich man's world, where justice is only onto the poor.

Tell that to all the rich guys went to jail.

Or if you have some statistical evidence, I'd love to read it.

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

#159

Post by lightgreen »

lotsofpulp wrote: post #11
ALittleLight wrote: post #8

Gained 1.5 million. Lost 2.6 plus two years in prison and his wife's job. Not a great trade.

Could have bought a few houses around town and made more money.

Great financial advice from a poor guy.

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

#160

Post by lordnacho »

arp242 wrote: post #154
lordnacho wrote: post #139

Earlier quoted context omitted.

I think people simply don't appreciate that it's an easily caught crime. Most illegal things that one might do won't ever be caught, eg you break into someone's house and it would take the police to bother investigating and then put enough effort into that one case. Or to stay in white collar you might forget to report some income, how's the tax man to know unless you are already in focus? With insider trading the in…

How do they know his wife worked for Amazon? Is this recorded? Or do you need to declare stuff like that? I don't know anything about trading; in naïve view would be that unless they have quite a bit of information about you that's not necessarily all that easily obtainable, it's not always so easy to detect?

They know everyone's trades. It's reported by all the exchanges. It's just a matter of scanning this DB and looking at the suspicious ones, which can't be that numerous. You can manually check for relationships at that point.
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