Former Amazon manager and family members charged with insider trading
Former employee’s family allegedly earned $1.4 million from unlawful trades
Constellation Research’s Ray Wang, Gibbs Wealth Management President Erin Gibbs and Payne Capital chief market strategist Courtney Dominguez add their perspective on markets and investing ahead of a week of big tech earnings.
A former finance manager at e-commerce giant Amazon on Monday was charged with insider trading by the Securities and Exchange Commission.
The SEC alleged a senior manager in Amazon’s tax department, who analyzed and reviewed numbers ahead of the company’s quarterly an annual earnings reports, is said to have obtained “highly confidential” information about the company’s performance and tipped off her husband from Jan 2016 through July 2018.
The employee’s husband and his father made trades using the information on 11 separate accounts, earning then family $1.4 million from the unlawful trades.
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"Employees with access to confidential, potentially market-moving corporate information may not use that information to enrich themselves, their friends, or their families," Erin Schneider, Director of the SEC's San Francisco Regional Office, said in a statement.
The employee, her husband and his father were all charged with violating antifraud laws.
A spokesperson for Amazon declined to comment on the charges.