|
A Walt Disney top executive's assistant was arrested on Wednesday along with her boyfriend as they were charged of offering to sell secrets on the company's financial picture to investment companies as claimed by authorities.
Bonnie Hoxie was the secretary to the Head of Corporate Communications and she has been accused of conspiracy and wire fraud along with Yonni Sebbag, also known as Jonathan Cyrus.
The initial court appearance for Hoxie and Sebbag is due on Wednesday in federal court in Los Angeles. Their representative in the court is not yet clear.
"The integrity of the securities exchanges can be compromised not only by top executives, but also by anyone entrusted with material, nonpublic information." said US attorney Preet Bharara.
Messages to Disney seeking comments on the issue were not returned immediately on Wednesday.
Information such as Disney's quarterly earnings before the publication of the result were obtained by Hoxie and in turn she fed this to Sebbag who tried to sell the tips.
The pair arranged unnamed letters to be sent to dozens of hedge funds and other investment companies while offering to sell the secrets.
FBI agents in the guise of hedge fund traders and offered to buy the information from the duo to trade in advance of the public announcement. The couple had send a copy of the document titled "The Walt Disney Company Q2 Fiscal 2010 Key Topics Speaking Points."
The defendants had notified the agents that the results would exceed the analysts expectations even before the public earnings announcement. Sebbag had met with two undercover FBI agents in New York and accepted $15000 in cash for the information. He also agreed provide to similar confidential information for a 30% share of any profits from early trades.
Hoxie and Sebbag could face prison term upto 25 years if convicted and also fines of $250,000 ot twice the amount that has gained or lost in the scheme.
New York's acting head of FBI George Venizelos said that majority of the hedge fund and investment companies that received the offers from the two had notified the FBI.
|
