A Fremont man has been indicted for illegally trading stocks of a San Francisco tech company, according to a release by the U.S. Attorney's Office on Monday.
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Dileep Kumar Reddy Kamujula, 35, of Fremont, allegedly used tips from an unidentified employee at the cloud communications company Twilio to make more than $950,000 in profits.
Kamujula has now been charged with "securities fraud in connection with alleged illegal securities trading," according to the release.
"Insider trading is not a game - it's a federal crime," said Acting Special Agent in Charge Stone in Monday's release. "This investigation should be a forceful disincentive for those tempted to commit any type of securities fraud. The FBI and our partners will take decisive action against those who seek to illegally exploit material nonpublic corporate information for their own gain."
Kamujula received and then used the employee's tips starting in spring 2020, financial company information that had not yet been made public.
Kamujula is charged with two counts and is facing up to 25 years in prison and a $250,000 fine for the first count, 20 years in prison and a $5 million fine for the second count.
Kamujula's next appearance is scheduled for April 22.
He is also facing a civil suit filed by the United States Securities and Exchange Commission against him and five others on charges of insider trading which allegedly violated securities laws.
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