Former Netflix Staffers Made $4.2m From Insider Trading
The US Securities and Exchange Commission (SEC) has charged three former Netflix employees over an insider trading ring that netted them $AUD$4.195 million.
Three former Netflix software engineers and two associates were named in the suit.
“We allege that a Netflix employee and his close associates engaged in a long-running, multimillion dollar scheme to profit from valuable, misappropriated company information,” said Erin Schneider, director of the SEC’s San Francisco office.
The SEC has singled out Sung Mo Jun, a former software engineer at Netflix, as the ringleader of the group, saying he used confidential information about Netflix subscriber growth numbers to trade shares ahead of earnings reports.\
This alleged occurred while Jun was working for the company in 2016 and 2017, and again once he left the company, where he tapped two other Netflix software engineers to provide the information.
The insider trading scheme was discovered using analytic tools that flag suspicious trading patterns.