The U.S. Securities and Exchange Commission has charged a former Yahoo! Inc. executive and a former mutual fund manager at a subsidiary of Ameriprise Financial Inc. today with insider trading, the SEC announced today.
The SEC alleges that Robert W. Kwok, Yahoo's former senior director of business management and mutual fund manager Reema D. Shah shared confidential information in 2008 and 2009 after a chance meeting in a hallway. The information included a tip about a search engine partnership between Yahoo and the Microsoft Corporation.
The allegations resulted in a parallel criminal case also announced today by the U.S. Attorney's Office for the Southern District of New York, according to a SEC press release. Kwok pled guilty to conspiracy to commit securities fraud, and Shah pled guilty to both a primary and conspiracy charge. Both are awaiting sentencing.
We contacted Yahoo and will update the post when they get back with comment.
According to the complaint, Kwok and Shah agreed to settle the SEC's charges. Under the settlement, Shah, a Menlo Park, Calif. resident, will be barred from the securities industry and Kwok, a Danville, Calif. resident, will be barred from serving as an officer or director of a public company.
Kwok allgedely told Shah in July 2009 that a deal between Yahoo and Microsoft, which had been the subject of rumor, would be ann... [Read more]
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