Seven people from India have been charged by US federal authorities for insider trading in a scheme that has made more than $ 1 million in illegal profits.
According to the Securities and Exchange Commission, Hari Prasad Sure (34), Lokesh Lagudu (31) and Chotu Prabhu Tej Pulagam (29) are friends and software engineers at Twilio, a San Francisco-based cloud computing telecommunications company. was working.
According to the complaint, Sure chipped his best friend, Dileep Kumar Reddy Kamujula, 35, who successfully traded Twilio’s options. Lagudu also chipped his girlfriend Sai Nekkalapudi, 30, where he lived. , 33. Pulagam turned over his brother Chetan Prabhu Pulagam, 31. All seven defendants live in California.
Prior to Twilio’s positive earnings announcement for the first quarter of 2020 on May 6, 2020, the SEC announced insider trading fees for seven individuals allegedly generating over US $ 1 million in collective profits from insider trading. Did.
According to SEC complaints, Sure, Lagudu, and Chotu Pulagam have access to various databases related to Twilio’s revenue reporting.
As claimed, around March 2020, they increased their use of Twilio’s products and services through the database in response to the health measures taken in the light of the Covid-19 pandemic. Knowing that, I concluded Twilio’s stock price in a joint chat. It will “certainly rise”.
The SEC’s complaint was that Sure, Lagudu, and Chotu Pulagam had deliberately fallen despite receiving a company policy banning insider trading, or the securities of Kamujula, Nekkalapudi, Dharmapurikar, and Chetan Pulagam. Claims to have used your account to trade Twilio. Options and shares prior to the May 6, 2020 earnings announcement while in possession of confidential information regarding customer use.
According to complaints, this scheme has generated over US $ 1 million in illegal trading profits.
According to SEC complaints, Sure, Lagudu and Chotu Pulagam “occasionally communicated in Telugu, a language frequently used in parts of India.” A private chat channel created with Twilio from late March to early May 2020.
“From late March to early May 2020, before Twilio’s public earnings announcement, Sure, Lagudu, and Chotu Pulagam used an in-house chat channel to tell Twilio market expectations in its quarterly earnings report. We talked about the possibility of exceeding it. May 2020. “
The complaint was “armed with valuable insider information,” obtained from Twilio, and Sure, Lagudu, and Chotu Pulagam said they were family members via phone or direct visit prior to Twilio’s earnings announcement. And started giving hints to friends. May 6, 2020.
“This insider trading ring claims to have used valuable revenue information related to pandemics at San Francisco’s tech companies,” said Monique C. Winkler, acting regional director of the SEC’s San Francisco Regional Office. Stated.
“We hold these alleged tippers and tippies accountable for their role in the scheme.” SEC complaints were made by Kamjura, Nekarapudi, Dharmaprika, and Chetan Pragam himself. He added that he was an employee of a listed company and understood that it was inappropriate.Insiders encourage others to trade securities based on important non-public information
On May 4, 2020 (just two days before Twilio’s scheduled earnings announcement), Sure, Pulagam, and Chotu Pulagam were trading on the chat channel for about $ 110 per share at the time. Stock price has increased dramatically since the announcement of earnings and we are ready to sell our restricted stock unit after the announcement.
“surely”[l]Looks like [the stock price] According to the complaint, Chotu Pulagam replied “Miillionaire eeeee” for $ 150.
The SEC’s complaint filed in Northern California has charged each defendant for violating the fraud prevention provisions of the Securities and Exchange Act. A US law firm in Northern California has also issued a criminal accusation against Mr. Kamjura.
(Except for the headline, this story has not been edited by NDTV staff and is published from the Syndicate Feed.)