SEC accuses Amazon CFO Laksha Bohra and family of insider trading – STL.news

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Washington, DC (STL.News) The Securities and Exchange Commission today indicted a former CFO of Amazon.com Inc. and two insider trading family members before Amazon’s earnings announcement between January 2016 and July 2018.

According to the SEC complaint, Laksha Bohra worked as a senior executive in Amazon’s tax department, where she prepared and reviewed the calculations used to finalize the figures included in Amazon’s quarterly and annual earnings that were filed with the SEC. From January 2016 until July 2018, Laksha Bohra reportedly acquired and tipped her husband Viky bohra with highly confidential information about Amazon’s financial performance. The complaint alleges that Viky Bohra and his father, Gotham Bohra, exchanged this confidential information in 11 separate accounts maintained by different members of the Bohra family. The complaint further alleges that Laksha Bohra ignored quarterly reminders prohibiting him from transmitting material non-public information or recommending the purchase or sale of Amazon securities. As alleged, the family has reaped illicit profits of around $ 1.4 million from their illegal trading in Amazon securities.

“We assert that the Bohras have repeatedly and systematically used Amazon’s confidential information for their own benefit,” said Erin Schneider, director of the SEC’s regional office in San Francisco. “Employees with access to confidential company information that could influence the market cannot use this information to enrich themselves, to enrich their friends or their family. “

The SEC complaint, filed in federal court in Seattle, accuses the three Bohras of violating anti-fraud provisions of federal securities laws. The three Bohras consented to the entry of final judgments permanently prohibiting them from continuing to violate the offending provisions, and ordering them to pay a total restitution of $ 1,428,094, total pre-judgment interest of $ 118,406 and total penalties of $ 1,106,399.

In a parallel action, the US District Attorney’s Office for the Western District of Washington today filed criminal charges against Viky Bohra.

The SEC investigation was conducted by Sallie Kim, with assistance from Marc Katz and Andrew Hefty, under the supervision of Monique C. Winkler of the San Francisco regional office. Darren Boerner of the Market Abuse Unit also participated in the investigation. The SEC appreciates the assistance of the United States Attorney’s Office for the Western District of Washington and the Federal Bureau of Investigation.


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