(HedgeCo.Net)Insider trading charges have been filed against five friends who repeatedly traded on confidential earnings information about a Silicon Valley cloud-computing company, reaping millions of dollars in trading profits.<\/p>\n
According to an SEC\u2019s complaint, Janardhan Nellore, a former IT administrator then at Palo Alto Networks Inc., was at the center of the trading ring, using his IT credentials and work contacts to obtain highly confidential information about his employer\u2019s quarterly earnings and financial performance. As alleged in the complaint, until he was terminated earlier this year, Nellore traded Palo Alto Networks securities based on the confidential information or tipped his friends, Sivannarayana Barama, Ganapathi Kunadharaju, Saber Hussain, and Prasad Malempati, who also traded. <\/p>\n
The SEC\u2019s complaint alleges that the defendants sought to evade detection, with Nellore insisting that the ring use the code word \u201cbaby\u201d in texts and emails to refer to his employer\u2019s stock, and advising they \u201cexit baby,\u201d or \u201center few baby.\u201d The complaint also alleges that certain traders kicked back trading profits to Nellore in small cash transactions intended to avoid bank scrutiny and reporting requirements. After the FBI interviewed Nellore about the trading in May, he purchased one-way tickets to India for himself and his family and was arrested at the airport.<\/p>\n
\u201cAs alleged in our complaint, Nellore and his friends exploited Nellore\u2019s access to valuable earnings information and attempted to hide their misconduct using code words and carefully tailored cash withdrawals,\u201d said Erin E. Schneider, Director of the SEC\u2019s San Francisco Regional Office. \u201cThis case highlights our use of enhanced data analysis tools to spot suspicious trading patterns and identify the traders behind them.\u201d <\/p>\n
The SEC\u2019s complaint, filed in the Northern District of California, charges Nellore, Barama, Kunadharaju, Hussain, and Malempati with fraud and seeks permanent injunctions, disgorgement with prejudgment interest, and penalties.<\/p>\n
The U.S. Attorney\u2019s Office for the Northern District of California today announced criminal charges against Nellore and Barama. <\/p>\n","protected":false},"excerpt":{"rendered":"
(HedgeCo.Net)Insider trading charges have been filed against five friends who repeatedly traded on confidential earnings information about a Silicon Valley cloud-computing company, reaping millions of dollars in trading profits. According to an SEC\u2019s complaint, Janardhan Nellore, a former IT administrator […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048],"tags":[],"class_list":["post-72222","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/72222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=72222"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/72222\/revisions"}],"predecessor-version":[{"id":72223,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/72222\/revisions\/72223"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=72222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=72222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=72222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}