American who bought Amazon shares with inside information sentenced to prison

A 37-year-old man from Washington, United States, was sentenced to 26 months in prison for securities fraud. This crime was configured by making use of privileged information about the status of the actions of Amazon, known through his wife, an employee of the company.

Through these questioned movements, the defendant obtained profits of $ 1,428,264 dollars.

Amazon Actions and the Civil Use of Insider Information

The sentence that yesterday fell on Viky Bohra, closes an episode that had been dragging on for some time. During a hearing that took place in November 2020, he pleaded guilty to the crimes charged by the US Securities and Exchange Commission, admitting that between 2016 and 2018 he used Amazon inside information, obtained through his wife, an employee. of Amazon finances, to carry out operations in shares of the company.

According to the records collected around this case, Bohra’s wife had access to confidential information regarding Amazon’s income and expenses.

Bohra’s wife was aware of the insider trading policy, which determines the responsibility to protect the company’s confidential financial information. However, despite the warnings, Bohra gained access to this confidential information and traded Amazon stocks and options in accounts linked to him and his father. Between 2016 and 2018, Bohra used the information obtained to transact successfully, before Amazon announced its earnings report.

“This defendant and his wife were earning hundreds of thousands of dollars in salary and bonuses from their tech jobs, but he wasn’t happy about it, greedily plotting for illegal profit by trading Amazon stocks.”said US Attorney Tessa M. Gorman during the last hearing. “This case should be a warning to those trying to gamble with the markets with the use of inside information: there is a high price to pay with a felony conviction and a prison sentence”added.

Prosecutors initially requested a 33-month sentence from the court. In their request, they justified the measure by stating that “Over two and a half years, Bohra, using information provided by his wife, made more than $ 1.4 million by doing illegal stock and options trading. Bohra’s conduct was not an isolated incident, limited to operating prior to the declaration of an Amazon profit. Rather, Bohra was involved in illegal insider trading prior to 11 consecutive earnings announcements ».

Currently, Bohra and her relatives accumulate the payment of $ 2,652,899 dollars for compensation, interest and penalties.

By timely assuming her guilt, Bohra’s wife will not face criminal charges. However, she no longer works at Amazon.

In times of growing interest in investing in the stock market and financial speculation, District Judge James L. Robart, who participated in this process, noted that Bohra had turned his wife and father into criminals , commenting: “I firmly believe that white collar crime deserves the same treatment as what we call street crime”.

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Lenny Li

I started to play with tech since middle school. Smart phones, laptops and gadgets are all about my life. Besides, I am also a big fan of Star War. May the force be with you!

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