Former Netflix staff charged to generate $ 3 million from trafficking insiders
Wall Street Watchdog has collected three former Netflix software engineers during the alleged trade ring of trafficking people which generate $ 3 million (£ 2.2 million).
Members of the former staff and two close colleagues were referred to as court papers.
Commission Securities and Exchange As (SEC) said the growth data of Netflial secrets is used in the scheme.
The information is thought to be used to trade giant streaming shares ahead of its income report.
A SEC that Sung Mo Jun, a former software engineer at Netflix, is in the center of a long-term scheme to trade stocks illegally using people’s information in the growth of the company’s customers.
According to complaints, while working for Netflix in 2016 and 2017, he repeatedly passed non-public information to his brother and a close friend who both used it to trade on several announcements of Netflix’s income.
The SEC also accused that after Sung Mo Jun left Netflix, he obtained confidential customer growth information from two people in other companies.
“We accused Netflix employees and close colleagues involved in the Multimillion Dollar scheme that had been a long time to get profit from valuable and misused company information,” said Erin Schneider, Director of the San Francisco Regional Office.
The SEC said it revealed the alleged scheme using a data analysis tool to find a successful trading pattern.
At the same time, the US lawyer office for the Western District Washington submitted a criminal case against four defendants, which could cause a prison sentence.
What is trafficking in insiders?
Trafficking in people is the purchase and sales of companies that are registered or other securities, such as bonds or stock options, based on information that is not available to the public.
In many countries, including the US and Britain, trafficking in people is illegal because it is seen as providing unfair benefits for those who have access to information.
While the rules and punishments are different throughout the world, in many people’s jurisdictions who are aware of non-public information and trading on the basis can be sentenced by financial market regulators and has the potential to face criminal prosecution.
The definition of people in frequently can expand, and can include not only people with direct access to confidential information but also those who share it and those who make trade decisions based on the information.