//
you're reading...
Politics, Congress, Investigation, Republicans, FBI, internet, health, Economy, Education, Wikipedia, local news, Press Release, Justice Department, Democrats, meta, Fraud, National News, Environment

PRESS RELEASE: Manhattan U.S. Attorney and FBI Assistant Director in Charge Announce Guilty Pleas of Yahoo Executive, Robert Kwok and California Hedge Fund Portfolio Manager, Reema Shah for Inside Trading

U.S. Attorney’s Office
May 21, 2012

Southern District of New York
(212) 637-2600

Manhattan U.S. Attorney and FBI Assistant Director in Charge Announce Guilty Pleas of Yahoo Executive and California Hedge Fund Portfolio Manager for Inside Trading

Preet Bharara, the United States Attorney for the Southern District of New York; and Janice K. Fedarcyk, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (FBI), announced that Robert Kwok and Reema Shah pled guilty today in Manhattan federal court to one count of conspiracy to commit securities fraud in connection with an insider trading scheme in which Kwok, an executive with Yahoo!, provided material, non-public information to Shah, a portfolio manager at an asset management firm that managed billions of dollars in mutual funds and a hedge fund, concerning Yahoo!’s quarterly earnings and potential business transactions. Shah, who then executed trades in Yahoo!, also pled guilty to one count of securities fraud. Kwok pled guilty before United States District Judge Robert Patterson, and Shah pled guilty before United States District Judge John Koeltl.

According to the informations and statements made during today’s guilty plea proceedings:

From at least January 2008 through July 2009, Kwok provided material, non-public information concerning Yahoo!’s quarterly earnings and potential business transactions with other companies (the “inside information”) to Shah, who then executed trades based on the inside information. For example, in the spring and summer of 2009, Kwok provided Shah with inside information by telephone, and thereafter, in July 2009, Shah executed securities transactions based on that information.

In exchange for the Yahoo! inside information, Shah provided Kwok with information concerning potential business transactions of publicly traded companies that Shah obtained, directly and indirectly, from other individuals. For instance, in early April 2008, Shah advised Kwok that Moldflow Corporation was going to be acquired. Thereafter, between April 7, 2008 and April 25, 2008, Kwok executed securities transactions based on that information.

***

Kwok, 36, of Danville, California, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; a maximum fine of $250,000, or twice the gross gain or loss from the offense; and a maximum period of three years of supervised release. As part of his plea agreement, Kwok has agreed to forfeit the proceeds he obtained as a result of the offense.

Shah, 40, of Menlo Park, California, pled guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. The conspiracy count carries a maximum sentence of five years in prison; a maximum fine of $250,000, or twice the gross gain or loss from the offense; and a maximum period of three years of supervised release. The securities fraud count carries a maximum sentence of 20 years in prison; a maximum fine of $5 million, or twice the gross gain or loss from the offense; and a maximum period of three years of supervised release. As part of her plea agreement, Shah has also agreed to forfeit the proceeds she obtained as a result of the offense.

Kwok is scheduled to be sentenced by Judge Patterson on September 18, 2012 at 4:00 p.m. Shah’s sentencing is scheduled for May 24, 2012 at 10:00 a.m.

Mr. Bharara praised the investigative work of the FBI. He also thanked the U.S. Securities and Exchange Commission for its assistance.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a co-chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jillian B. Berman and Reed Brodsky are in charge of the prosecution.

Advertisements

About FREDERICA CADE

Most of the information you will see comes from some Federal/state Government documents or Federal/State Governm Agency. -----------------------------------------------The fellow that can only see a week ahead is always the popular fellow, for he is looking with the crowd. But the one that can see years ahead, he has a telescope but he can't make anybody believe that he has it. ~~~~Will Rogers __The woman who follows the crowd will usually go no further than the crowd. The woman who walks alone is likely to find herself in places no one has ever been before.~ Albert Einstein ~"I never work better than when I am inspired by anger; for when I am angry, I can write, pray, and preach well, for then my whole temperament is quickened, my understandingsharpen​ed, and all mundane vexations and temptations depart.” ~Dr. Martin Luther King Jr. _________________________________________________________________________________________ ~"The bosom of America is open to receive not only the Opulent and respectable Stranger, but the oppressed and persecuted of all Nations and Religions; whom we shall welcome to a participation of all our rights and privileges, if by decency and propriety of conduct they appear to merit the enjoyment".~___________________________________ George Washington, Address to the Members of the Volunteer Association of Ireland, December 2, 1783 Fredericacade@gmail.com

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Frederica Cade’s Blog (Politics, News, Analysis, Investigation, Press Releases, Education, Economics, Internet, News Releases, Featured stories, Fraud, and History, U.S. Laws, Posted stories, Index of reports, meta,Home page)

Blog Stats #

  • 922,174 hits

Frederica Cade’s Archives

Recent Post

May 2012
M T W T F S S
« Apr   Jun »
 123456
78910111213
14151617181920
21222324252627
28293031  

Frederica Cade’s Blog (Politics, News, Analysis, Investigation, Press Releases, Education, Economics, Internet, News Releases, Featured stories, Fraud, and History, U.S. Laws, Posted stories, Index of reports, meta,Home page)

Politics, local News, National News, Foreign news, Congress, President, Government, Economics, Analysis, Art, Health,Investigation, FBI, Justice Department, Fraud, Press Releases, Health Care, News Releases, Law, and History Tags

2012 Elections Affordable Care Act Alabama Albuquerque ALEC Alexandria American Legislative Exchange Council AMERICAN LEGISLATIVE EXCHANGE COUNCIL (ALEC) Analysis Arizona Atlanta Attorney General Eric Holder California charter schools Chicago Congress Connecticut Democrats Deputy Attorney General James M. Cole Donald Trump Economics Economy Education Environ Environme Environmen Environment EPA FBI Federal Election Commission (FEC) Florida fraud FreedomWorks General Georgia Governor Nikki Haley Grover Norquist Hammond Health Health Care Heritage Foundation HHS Secretary Kathleen Sebelius Hillary Clinton History https://fredericacade.wordpress.com https://fredericacade.wordpress.com/wp-admin/edit.php?category_name=politics-congress-investigation-republicans-fbi-internet-health-economy-education-wikipedia-local-news-press-release-justice-departm Idaho Illinois Inc. Indiana Internet Investigation Iowa IRS jobs Jr. Justice Department Kansas Kara Pally Keystone XL Knoxville Koch Koch Brothers Koch Industries Laws local news Louisiana Maryland Massachusetts Matte Kibbe Memphis meta Miami Michigan Minnesota Mississippi Missouri Mitt Romney Montana Nashville National News Nebraska New Jersey New Mexico News New York Nikki Haley North Carolina Ohio Oklahoma Oregon outsourcing Paul Ryan Pennsylvania Philadelphia Politics President President Obama Press Release Public Schools Puerto Rico record Republicans Rhode Island South Carolina South Dakota Sr. Tennessee Texas Top Story TransCanada Vincent Sheheen Virginia Voting Rights Act Voting Rights Act of 1965 WASHINGTON Washington D.C. West Virginia Wikipedia Wisconsin

Frederica Cade’s Blog (Politics, News, Analysis, Investigation, Press Releases, Education, Economics, Internet, News Releases, Featured stories, Fraud, and History, U.S. Laws, Posted stories, Index of reports, meta,Home page)

Follow me on Twitter

Frederica Cade’s Blog (Politics, News, Analysis, Investigation, Press Releases, Education, Economics, Internet, News Releases, Featured stories, Fraud, and History, U.S. Laws, Posted stories, Index of reports, meta,Home page)

Advertisements