Netflix Insider Trading Scandal Unfolds
In a shocking turn of events, three former Netflix engineers have found themselves in hot water due to allegations of insider trading. The Securities and Exchange Commission (SEC) asserts that Sung Mo Jun, a key player in the scheme, made use of non-public information about Netflix's user growth during his tenure with the company and post-departure in 2017.
Sung reportedly collaborated with two other Netflix employees, who in turn shared the confidential information with Jun's brother and a close friend. These individuals subsequently leveraged this information to trade in Netflix stocks before the public announcement of the company's earnings .
The SEC claims that this ring raked in a revenue of 3.1 million USD by employing encrypted messaging apps for covert stock trading activities over a span of three years. When reached for comment, Netflix declined to provide a statement. Efforts to contact Sung Mo Jun and other individuals mentioned in the SEC complaint were unsuccessful .
Netflix values its subscriber count as confidential information and discourages employees from engaging in insider trading based on this information.
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Sources:
: SEC Filing 21-cv-01731 (2021)
Enrichment Data:
Allegations:
- In 2021, five Netflix employees, including former engineer Sung Mo Jun, were charged with insider trading by the SEC. The group was accused of using insider information to trade ahead of 13 earnings announcements between 2016 and 2019, netting $3.1 million in profits .
- Sung Mo Jun: He was sentenced to 2 years in prison for an insider trading scheme where he leaked subscriber numbers in advance of official releases .
Consequences:
- SEC Charges: The SEC charged five Netflix employees, including Sung Mo Jun, with insider trading. The exact penalties for the other individuals involved in the scheme are not specified in the provided sources .
