US federal officials have charged seven people of Indian origin with illegal profits of more than $1 million by doing insider trading. The Securities and Exchange Commission (SEC) said on Monday that Hari Prasad Sure (34) ), Lokesh Lagudu (31) and Chhotu Prabhu Tej Pulagam (29) are friends and they worked as software engineers at Twilio, a San Francisco-based cloud computing communications company.
The complaint said that Sure had passed on the stock details of the company to his close friend Dilip Kumar Reddy Kamujula (35), who made profits by investing in Twilio’s stock. Similarly, Lagudu gave information about the stock market to his friend Sai Nekkalapudi (30), who was living with him. Lagudu also gave insider information about the company’s shares to his close friend Abhishek Dharmapurikar (33). Pulagam advised his brother Chetan Prabhu Pulagam (31) to invest in the company’s stock. All the seven accused are residents of California.
On May 6, 2020, the SEC announced charges against these seven individuals for collectively profiting more than $1 million through insider trading ahead of Twilio’s 2020 first quarter earnings announcement.
According to the SEC’s complaint, Sure, Lagudu and Chhotu Pulagam gained access to various revenue databases of Twilio and in March 2020 they learned from the database that consumers had lost money to the company due to the health measures taken in the wake of COVID-19. Increased use of products and services. They concluded in a group conversation that Twilio’s share price “is sure to rise”.
The SEC alleged that Sure, Lagudu and Chhotu Pulagam shared his stock information despite the company’s policy prohibiting insider trading.