Shah earlier paid more than $500,000.
By The American Bazaar Staff
WASHINGTON, DC: Reema D. Shah, a former money manager for Ameriprise Financial Inc., who pleaded guilty to securities fraud, has been ordered by the Securities and Exchange Commission (SEC) to pay $390,103, a figure roughly equal to the gains regulators said her funds earned based on an insider tip about Yahoo.
Shah, a tech-stock picker for Ameriprise, illegally recommended Yahoo Inc. stock in 2009 on the basis of nonpublic information about a search engine partnership between the Sunnyvale, Calif., technology firm and Microsoft Corp., reported Investment News.
The SEC said the source of the information was Robert W. Kwok, a former Yahoo executive, whom Shah had given inside information a year earlier about another company, Autodesk Inc.
The payment will resolve the criminal and civil proceedings against Shah, who was already sentenced in October to two years of probation and ordered to pay $511,751 in fines and forfeitures.
Shah — who government officials said regularly traded inside information between 2004 and 2009 with hedge fund managers, research analysts, consultants, as well as Mr. Kwok — avoided prison time. The two criminal counts she pleaded guilty to carry a maximum term of 25 years, the Investment News reported.
Shah had cooperated extensively with federal agencies including the FBI, who credit her with information and wiretaps and other recordings that aided a number of insider-trading investigations, including the case against SAC Capital Advisors. That firm agreed to pay a record $1.8 billion in penalties and to stop managing outside money in November 2013.