Two People Arrested in Disney Insider Trading Scheme

Posted at May 26, 2010

In a brilliant move, a former Disney employee and her boyfriend were arrested this morning in Los Angeles for allegedly trying to sell insider information regarding the media giant to various hedge funds for $15k a pop. Bonnie Hoxie, who worked as an assistant in Disney’s communications department, according to Dealbreaker, and her boyfriend, Yonni Sebbag sent unsolicited emails to hedge funds asking for cash in exchange for insider information about earnings and Disney’s plan to sell ABC to two PE firms. (The news about ABC, which the New York Post hinted at earlier this week, has already caused a jump in Disney’s stock.)

But, being good samaritans, some of the hedge funds on the receiving end of these emails alerted the FBI and the Feds arranged a sting operation.

Here’s one of the emails, cited on Dealbreaker, which Yonni wrote to about 20 hedge funds and an undercover FBI agent posing as a hedge fund manager:

Hi, I have access to Disney’s (DIS) quarterly earnings report before its release on 05/03/10 [sic]. I am willing to share this information for a fee that we can determine later. I am sorry but I can’t disclose my identity for confidentiality reasons but we can correspond by email if you would like to discuss it. My email is eilatcap@gmail.com. I count on your discretion as you can count on mine. Thank you and I look forward to talking to you.

Apparently, all Bonnie wanted out of the heist was a purse and a pair of shoes… From the SEC’s complaint, cited on Dealbreaker:

Hoxie stated “here is the bag that you are going to get for me – thank [sic],” and attached a link to a picture of an expensive Stella McCartney designer handbag available for $700 at Neiman Marcus, an upscale department store. Sebbag replied that he would get Hoxie the bag “next week.” Anticipating that they would receive substantial compensation from the Putative Traders, Sebbag stated “I may be able to [buy] u 2 of them, lol.” Hoxie responded via email, “In that case, i also love love these shoes” and attached a link to a picture of expensive Stella McCartney shoes also sold at Neiman Marcus.

The pair are being charged with one count of wire fraud and one count of conspiracy. They face a maximum sentence of 25 years in prison and a fine of at least $250,000.

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  • http://simplyhedgefunds.com Thomas

    I take it that by 'the pair' you mean Bonnie and Yonnie and not the shoes?

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