Robert W. Kwok, formerly Yahoo’s senior director of business management, and Reema D. Shah, a former mutual fund manager at the Ameriprise Financial unit RiverSource Investments LLC, were charged Monday with insider trading and have agreed to settle the SEC’s charges.
The U.S. Attorney’s Office for the Southern District of New York also announced parallel criminal charges on Monday. The SEC’s investigation is continuing; Kwok and Shah have pled guilty to the criminal charges, the former to conspiracy to commit securities fraud, and the latter to both a primary and conspiracy charge. Both are awaiting sentencing.
According to an SEC statement, Kwok and Shah met in January 2008 when both were attending professional events in the same facility. They stayed in touch after the events were over, speaking frequently by phone, and Kwok kept Shah apprised of Yahoo-related information. In exchange, Shah advised Kwok about information she learned in the course of her own work, and both, according to the SEC, benefited from the exchange.