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

Post by 88840-8855 » Fri, Jun 11, 2021, 6:18 AM UTC

lightgreen wrote: post #158

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.

Post by sidlls » Fri, Jun 11, 2021, 6:22 AM UTC

nindalf wrote: post #149

unishark wrote: post #129

Earlier quoted context omitted.

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.

Really? Even as a rank and file pleb I wasn’t allowed to trade except for about 2-3 weeks after earnings calls. I assumed that was the norm everywhere.

Post by ping_pong » Fri, Jun 11, 2021, 6:27 AM UTC

chrisjharris wrote: post #111

ping_pong wrote: post #47

I love how no one on Wall Street was convicted of anything criminal even though they almost destroyed the entire global financial system. There was even text messages of fraud being committed and nothing happened. Not even clawbacks or fines or anything. The government just let them go. That was so disappointing, and one of the first signs of how Obama was going to betray the progressives and let Bush's status quo re…

I don't disagree with the general sentiment that the GFC was a total disaster, and I'd certainly not argue against the idea that a system had developed that had poor incentives, with sometimes greedy and unethical people working in it. What kind of concerns me, though, is the way that poor decision-making is conflated with breaking the law, or the belief that a terrible outcome ex-post necessarily implies illegality.…

Post by yarcob » Fri, Jun 11, 2021, 6:30 AM UTC

fy20 wrote: post #170

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…

I wonder if he would have been caught if instead of buying Amazon directly, he bought an index fund that has them? I think Amazon makes up something like 3% of some of the Vanguard index funds.

Post by lizdax » Fri, Jun 11, 2021, 6:39 AM UTC

pawelos wrote: post #157

lizdax wrote: post #137

Earlier quoted context omitted.

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.