Feeds

Former Nvidia engineer nabbed for insider trading

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

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

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. ®

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.