The SEC has brought charges in an insider trading scheme attempt orchestrated by a Disney secretary and her boyfriend.From the SEC:
Bonnie Jean Hoxie and her boyfriend, Yonni Sebbag, sent anonymous letters in March 2010 to more than 20 hedge funds in the U.S. and Europe, offering to provide pre-release results of Disney’s second quarter 2010 earnings in exchange for a fee.
“Hoxie and Sebbag stole Disney’s confidential pre-release earnings information,” says Robert Khuzami from the SEC. “Fortunately, multiple hedge funds reported the illicit scheme.”
The SEC says that 20 hedge funds were contacted anonymously by the couple, but only some of the hedge funds reported it to the SEC. (Good for those that did something about, but what about the others who did nothing?)
Anyway, then the FBI stepped in and offered to buy the information from the two, to which apparently Yonni (who was posing as Jonathan Cyrus) replied:
- “First of all, i am not a fed, I have no way to prove it at this point but i am not asking you to disclose your identity not i will disclose mine. It is up to you to determine if this is worth the risk as i did. I work for Disney, that is all i can tell you.”
- “I can deliver 3 to 4 days before release. I will email you the report as soon as i have it and you will wire transfer the money to my account after you get ahold of it. I am asking you to make me an offer based on the capital gains from the trade and the risk i am taking delivering this information to you? Also, i am looking to build a strong business relationship with you for future quarters and information.”
- “I dont think we will get caught if we stay discrete and careful. You can count on my discretion as i am counting on yours…”
- “… $15k sounds great and $30k even better as i hope you will make a killing from Q2 earnings. I promise i will keep you informed of any unanticipated event, i keep my ears wide open here.”
Then two days before the earnings were released, Yonnie unwittingly emailed the FBI a 107-page Disney document which ran through what they were going to say on their upcoming quarterly earnings conference call.
The SEC says the FBI got the Disney Q1 numbers two hours before they were publicly released.
The FBI apparently met with Yonni on May 14th in New York and gave him a envelope with $15,000 in cash.
The couple was arrested today in LA.
Here’s Bonnie’s profile on a tennis website. It says she’s looking for someone to play tennis with. Not anymore! We’re guessing.
Read more on SEC.gov.
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