An Indian American has been sentenced in the United States on charges of insider trading. The accused is a former executive of Lumentum Holdings Inc. where he used his knowledge of the firm’s working to benefit his friends and for personal gains. He worked as the Chief Information Security Officer at the firm.
The accused has been sentenced to 24 months in prison in addition to a fine he needs to pay amounting nearly $1 million. He had previously pled guilty to 13 counts involving insider trading schemes. The accused divulged into insider trading based on material, non public information (MNPI).
Disclosure of any such information falls under misappropriation and is illegal. In 2020 the accused used the non-public information about Lumentum acquiring Coherent and asked his friends to trade in Coherent. As a result they managed to make a profit of nearly $900,000.
He got himself involved in a similar insider trading scheme and helped some other friends make around $4.3 million. Half of all these profits were paid to him as fees.
