Wednesday, 30 July 2014
Last updated 9 hours ago
Jan 28 2011 | 5:02pm ET
Yonni Sebbag, who admitted he tried to sell confidential information about the Walt Disney Co. to some 20 hedge funds, has been sentenced to more than two years in prison.
Sebbag pleaded guilty to wire fraud and conspiracy in August. He and his girlfriend, Bonnie Hoxie, who has also pleaded guilty in the case, used her post as an assistant to Disney communications chief Zenia Mucha to steal corporate information about the company before it became public.
Sebbag said he took the information obtained by Hoxie and tried to sell it to a large number of investment firms, including about 20 hedge funds. Unfortunately for Sebbag and Hoxie, the hedge funds quickly turned over the offer letters they received to authorities, and the duo were arrested in a sting operation featuring a pair of undercover Federal Bureau of Investigation agents posing as hedge fund traders.
The 30-year old was sentenced to 27 months in prison. Sebbag faces likely deportation to his native Morocco upon his release.
Sebbag's lawyer unsuccessfully sought leniency for his client, noting his business troubles and gambling addiction, and suggested no more than one year in prison. That's much more in line with what Hoxie will get when she is sentenced; Sebbag's girlfriend is looking at only four to 10 months.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…