Feeds

Former Nvidia engineer nabbed for insider trading

Made a killing on advance knowledge of X-box deal, allegedly

  • alert
  • submit to reddit

High performance access to file storage

Ex-Nvidia staffer Manu Shrivastava has been accused by the US Securities and Exchange Commission of profiting illegally from his inside knowledge of the 3D chip company's business.

If found guilty of insider trading, Shrivastava could face not only the loss of all profits made by trading in Nvidia stock using his 'specialist' knowledge, but interest on the money and up to three times the amount of his gains in fines.

The SEC's action was carried out with the participation of the District Attorney for Northern California. The DA's office will also be proffering criminal charges that could lead to fines of $500,000 and up to 15 year in chokey.

The case against Shrivastava centres on allegations that he acquired 100 short-term Nvidia call option contracts after learning that Nvidia had been granted the graphics contract for Microsoft's upcoming X-box games console.

Shrivastava paid $30,825 for the options, says the SEC. When the X-box deal was announced, the options became worth $446,000, an increase of well over one thousand per cent, certainly a very fortuitous investment.

A little too fortuitous, reckons the SEC, though proving it will be difficult if Shrivastava refuses to fess up. As yet neither the man himself nor his lawyer have commented on the SEC accusations. That said, the DA's investigation may well have revealed a clear connection between Shrivastava and the X-box contract. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.