Ex-Yahoo! exec charged with insider trading

2012-05-22 08:20

kalahari.com

San Francisco - US regulators on Monday announced that a former Yahoo! executive has agreed to plead guilty in an insider trading scheme that involved leaking word of the internet search giant's pact with Microsoft.

Robert Kwok was senior director of business management at Yahoo! in 2009 when the firm negotiated an alliance with Microsoft to have Bing technology power online searches, according to the Securities and Exchange Commission.

Kwok shared news of the supposedly secret pact with Reema Shah, who was then the mutual fund manager for Ameriprise Financial Inc, the SEC said.

Shah orchestrated the purchase of more than 700 000 shares of Yahoo! stock based on Kwok's "illegal tip" and then sold them for a profit of $389 000 after the Microsoft deal went public, the SEC charged.

Shah had done a similar favour for Kwok a year earlier, letting him in on inside word that Autodesk was about to buy Moldflow Corporation, according to the SEC. Kwok made $4 754 trading on the "nonpublic information", it said.

"Kwok and Shah played a game of you scratch my back and I'll scratch yours," SEC enforcement division associate director Scott Friestad said in a statement.

Kwok and Shah spoke frequently since meeting in 2008, with Kwok sharing inside knowledge about Yahoo!'s financial performance and Shah reciprocating with snippets of information from her job to help guide Kwok's investment decisions, according to the SEC.

The California residents have agreed to plead guilty to conspiring to commit securities fraud, it said.

Under the terms of the plea deals, which must be approved by a judge, Shah will be barred from the financial securities industry and Kwok will not be allowed to serve as an officer or director of a public company.

Financial penalties would be determined by a court at a later date.

Read more on:    yahoo  |  microsoft  |  us
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
4 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News
Traffic & Train Alerts
Traffic
Cape Town 12:12 PM
Road name: N1 Inbound

ACCIDENT near the N7 Highway bridge

Montague Gardens 12:06 PM
Road name: Montague Drive

ROADWORKS - lane closures both directions for BRT lane construction - DELAYS towards Bosmansdam Road

Jobs in Cape Town [change area]

Jobs in Western Cape region

Jnr It Technician

Western Cape
Tower Group (PTY) Ltd
R7 500 - R8 500 Per Month

Debtors Clerk/Credit Controller

Milnerton
Coastal Engineering Supplies
R10 000 Per Month

Fund Manager

Western Cape
Hire Resolve
R700 - R900 Per Year

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Up to 60% off - clearance sale!

Save up to 60% on appliances, books, electronics, toys, movies and more. Offer valid while stocks last. Shop now!

Deal of the Week!

Get bestselling John Green novels now just R99 each! Hurry and get yours while stocks last. Shop here.

Mind blowing deals on beauty & fragrances

Save up to 30% off beauty and fragrances. Offer valid while stocks last. Shop now!

Up to 50% off hair care products!

Save up to 50% on professional hair care products at kalahari.com. Offer valid while stocks last. Shop now!

30% off academic books

Score a mind blowing 30% off academic books! Offer valid while stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

Social media is pulling you in and you have the desire to find out everything you know about your friends and you have the urge to...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.