Sep 29, 2020 12:30:00

Former Amazon Tax Manager Sued for Insider Trading

The

Securities and Exchange Commission (SEC), which oversees and oversees securities transactions such as stocks and bonds in the United States, has charged a former employee and his family who held senior management in Amazon's tax department with insider trading.

SEC.gov | SEC Charges Amazon Finance Manager and Family With Insider Trading
https://www.sec.gov/news/press-release/2020-228

SEC charges former Amazon finance manager and her family in $ 1.4M insider trading case --GeekWire
https://www.geekwire.com/2020/sec-charges-former-amazon-finance-manager-insider-trading-alleged-tips-family/

Former Amazon finance manager charged with insider trading --Silicon Valley Business Journal
https://www.bizjournals.com/sanjose/news/2020/09/28/former-amazon-employee-insider-trading.html

On September 28, 2020, the SEC sued Rakcha Bora, a former Amazon employee and senior manager of the company's tax department, and her family in insider trading. From January 2016 to July 2018, Rakcha used calculations to develop Amazon's quarterly and annual financial statements to be submitted to the SEC to collect sensitive information for insider trading. It is reported that it was.

Rakcha Bora has been accused of leaking confidential information for insider trading to her husband, Biki Bora. In addition, according to the complaint, Mr. Biki and his father, Mr. Gotham Bora, used 11 bank accounts in the name of their family to conduct insider trading. The Rakcha and other families are said to have earned $ 1.4 million (about 150 million yen) from illegal insider trading.

'We allege that the Bora family has repeatedly and systematically used Amazon's confidential information for their own benefit,' Erin Schneider, director of the SEC's San Francisco Regional Office, said in a statement. Employees who have access to sensitive corporate information that may affect the market are prohibited from using that information to enrich themselves, friends and family. '

The SEC's complaint has been filed in a federal court in Seattle, in which the SEC has accused Rakcha, Biki, and Gotham of violating the fraud prevention provisions of federal securities law. In addition, Mr. Rakucha and three others have admitted the charges, and the complaint states that they have earned a total of $ 1,428,094 (about 150 million yen) as a profit from insider trading. In addition, Mr. Rakcha and others have been ordered to pay a fine of $ 1,106,399 (about 120 million yen).

Mr. Rakucha joined Amazon in December 2012 and retired on October 25, 2018. Foreign media GeekWire has asked Amazon for comment, but no response has been received.