The Securities and Exchange Commission (SEC) of the United States has charged former finance manager at Amazon.com, Inc. (NASDAQ:AMZN), Laksha Bohra, and two family members with insider trading.
According to a statement from the regulator on Monday, the SEC has charged Laksha Bohra, Viky Bohra, and Gotham Bohra with insider trading in advance of Amazon announcing its earnings between January 2016 and July of 2018.
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Whilst employed at the multinational technology giant, Laksha Bohra worked as a senior manager in the company’s tax department. In this role, she prepared and reviewed calculations used to finalise numbers for the company’s quarterly and annual earnings, which were filed through the SEC.
In its complaint, the SEC alleges that between January 2016-July 2018 she acquired and tipped her husband Viku Bohra with highly confidential information about the tech giant’s financial performance.
The complaint, which was filed in the U.S. District Court for the Western District of Washington, also claims that Viky Bogra and his father, Gotham Bohra, traded on this confidential information in 11 separate accounts.
SEC alleges Laksha Bohra disregarded Amazon rules
“The complaint further alleges that Laksha Bohra disregarded quarterly reminders prohibiting her from passing material nonpublic information or recommending the purchase or sale of Amazon securities. As alleged, the family reaped illicit profits of approximately $1.4 million from their unlawful trading in Amazon securities,” the SEC said in its statement on Monday.
Specifically, Laksha Bohra, Viky Bohra, and Gotham Bohra have been charged with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint orders the defendants to pay total disgorgement of $1,428,094, total prejudgment interest of $118,406, and total penalties of $1,106,399.
In a parallel action, the US Attorney’s Office for the Western District of Washington has also filed criminal charges against Viky Bohra, the husband of the former employee of Amazon.
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