Email This Post Email This Post

SEC Charges Former eBay Employee with Insider Trading

eBay logo

eBay logoThe SEC (Securities and Exchange Commission) charged eBay Inc.’s former Director of SEC Reporting with insider trading ahead of Xoom Corporation’s acquisition by PayPal Holdings, which, at the time, was owned by eBay.

Readers might remember that in 2014, an executive at GSI Commerce was charged with insider trading in advance of its acquisition by eBay.

Press release follows:

SEC Charges Ebay’s Former Director of SEC Reporting with Insider Trading
Litigation Release No. 24317 / October 16, 2018

Securities and Exchange Commission v. Bryan B. Long, Civil Action No.18-cv-05973-KAW (N.D. Cal. filed Sept. 28, 2018)

Sponsored Link

On September 28, 2018, the Securities and Exchange Commission charged eBay Inc.’s former Director of SEC Reporting with insider trading ahead of Xoom Corporation’s acquisition by PayPal Holdings, which at the time was owned by eBay.

The SEC’s complaint alleges that Bryan B. Long, a CPA who was employed as eBay’s Director of SEC Reporting, obtained material non-public information about PayPal’s impending acquisition of Xoom in the course of his work preparing PayPal’s SEC filings. According to the complaint, Long purchased Xoom call options in late May 2015 shortly after PayPal made its initial acquisition offer. Approximately one month later, after learning that the deal was moving forward and could be announced in “early July,” Long allegedly engaged in a second round of illegal trades, purchasing additional Xoom call options that were due to expire in less than a month. As alleged in the complaint, Long reaped almost $36,000 in ill-gotten gains by selling all of the options after PayPal announced it was acquiring Xoom on July 1, 2015.

The SEC’s complaint, filed in federal district court in the Northern District of California, charges Long with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks a permanent injunction, disgorgement of ill-gotten gains, pre-judgment interest, and civil monetary penalties.

The SEC’s investigation has been conducted by Diana K. Tani and Paul E. Kim of the SEC’s Market Abuse Unit with the assistance of John S. Rymas in the unit’s Analysis and Detection Center. The litigation will be led by John B. Bulgozdy and Amy Longo of the Los Angeles Regional Office. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.

SOURCE: SEC Press Release

Ina Steiner on EmailIna Steiner on LinkedinIna Steiner on Twitter
Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

3 thoughts on “SEC Charges Former eBay Employee with Insider Trading”

Leave a Reply