Alleged Insider Trading Scheme Leads To Arrest Of Disney Secretary, Boyfriend

A secretary for the WALT DISNEY CO.'s head of corporate communications and her boyfriend were arrested by the FBI on charges that they attempted to sell advance notice of DISNEY's earnings reports, a violation of securities laws, reports the LOS ANGELES TIMES. BONNIE JEAN HOXIE, secretary to EVP/Corporate Communications ZENIA MUCHA, and HOXIE's boyfriend YONNI SEBBAG allegedly sent anonymous letters to over 20 hedge funds making an offer to sell the early reports for cash and a percentage of resulting profits.

HOXIE and SEBBAG were caught in a sting set up by the FBI on MAY 14th, with a meeting between SEBBAG and agents posing as hedge fund managers resulting in charges including a count of wire fraud and a count of conspiracy to commit securities fraud and wire fraud. The wire fraud charge carries a potential 20-year prison sentence for each, and the conspiracy charge could lead to five years in prison. The arrests followed complaints filed by the SEC and Department of Justice.

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