A Fremont man will go to prison for using confidential data from a relative at Twilio Inc. to trade company securities and pocket $550,000 in profit, federal prosecutors said Friday.
Dileep Kumar Reddy Kamujula was sentenced to six months behind bars and ordered to forfeit $130,369, according to a statement from the U.S. Attorney's Office for Northern California.
Twilio, based in San Francisco, makes software that allows businesses to communicate with their customers. Buying or selling stock using information not made public is typically illegal.
Kamujula, 37, admitted in a plea agreement that he used confidential Twilio customer usage data to buy Twilio call options in April 2020. A call option is a contract that gives an investor the right, but not the obligation, to buy a security at an agreed-upon price.
He sold the options in May 2020 for a profit of more than $550,000, prosecutors said.
Gross profit: $550k. Net profit: $420k. Jail time: six months. I reckon this guy is making $70k per month for his trouble.
Don’t you worry, the SEC is for sure after him for all the profits and most likely the 52.1% TAXES paid will not be returned by the IRS and he must have paid over $100K to his defense council for representation. Lifelong issues that comes with a conviction and the shame that he must have gone through will all together make sure that he and anyone that knows him learns the lesson about not skirting the law.