TECH - Financial Crimes Weekly: Insider Trading At Arista Del Taco; KuCoin In Civil Action Suit | Benzinga
Andreas Bechtolsheim, founder and chief architect of Silicon Valley-based technology company Arista Networks Inc (NYSE:ANET), this week agreed to settle charges of insider trading, paying a civil penalty of nearly $1 million.
The U.S. Securities and Exchange Commission (SEC) alleged that Bechtolsheim misappropriated non-public information regarding the eventual takeover of Acacia Communications.
Bechtolsheim was chair of Arista when he learned of Acacia’s impending acquisition on July 8, 2019.
A rival bidder was believed to have consulted with Bechtolsheim who, upon learning this information, immediately traded Acacia options through the accounts of a close relative and an associate.
The following day, it was announced that Cisco Systems Inc (NASDAQ:CSCO) was to acquire Acacia for $70 per share and Acacia’s share price jumped 35%.
The SEC alleged that Bechtolsheim’s trading generated illegal profits of $415,726 through the accounts of his relative and associate.
Bechtolsheim, without admitting or denying the charges, agreed to a ...