Reema Shah faces SEC insider trading charge

The SEC,in its release,alleged that Kwok,who was Yahoo8217;s senior director of business management,breached his duty to the company when he told Reema D. Shah in July 2009 that a deal between Yahoo and Microsoft would be announced

soon.

8220;Shah had reached out to Kwok amid market rumors of an impending partnership between the two companies,and Kwok told her the information was kept quiet at Yahoo and only a few people knew of the coming announcement.

8220;Based on Kwok8217;s illegal tip,Shah prompted the mutual funds she managed to buy more than 7,00,000 shares of Yahoo stock that were later sold for profits of approximately USD 3,89,0008221;,the SEC release added.

The SEC further alleges that a year earlier,the roles were reversed.

8220;Shah tipped Kwok with material nonpublic information about an impending acquisition announcement between two other companies. Kwok traded in a personal account based on the confidential information for profits of 4,7548221;,it said.

Kwok and Shah,who live in California,have agreed to settle the SEC8217;s charges,it said.

8220;Financial penalties and disgorgement will be determined by the court at a later date8221; the SEC release said.

Under the settlements,Shah will be permanently barred from the securities industry and Kwok will be permanently barred from serving as an officer or director of a public company,it said.