A former Yahoo! Inc. exec and a former mutual fund manager at
a unit of Ameriprise Financial Inc. (AMP) pleaded guilty to insider trading and
resolved civil complaints by federal securities regulators, the U.S. said.
Robert W. Kwok, Yahoo’s senior director of business
management, gave illegal tips to Reema D. Shah, a portfolio manager at the
Ameriprise unit, RiverSource Investments LLC, about Yahoo’s quarterly earnings
and potential transactions with outside companies, Preet Bharara, U.S. Attorney
for Manhattan, said in an e-mailed statement.
Shah’s firm managed billions of dollars in mutual funds and
a hedge fund, and traded on Kwok’s information, according to the statement.
Kwok and Shah also yesterday settled related civil cases against them brought
by the U.S. Securities and Exchange Commission.
In exchange for the inside information, Shah gave Kwok
information about potential business transactions of other publicly traded
companies, Bharara said. Kwok, 36, of Danville, California, and Shah, 40, of
Menlo Park, California, both pleaded guilty to conspiracy to commit securities
fraud, according to the statement. Kwok’s sentencing is scheduled for Sept. 18
and Shah’s is set for May 24, Bharara said.
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