FREMONT, Calif. (Diya TV) — Dileep Kumar Reddy Kamujula, a Fremont resident, has been sentenced to six months in prison for his involvement in a securities fraud scheme leveraging insider information from tech company Twilio Inc., federal authorities announced.
37 year old Kamujula was ordered by U.S. District Judge Jon S. Tigar to also forfeit $130,369.28 as part of his sentencing.
He had previously pled guilty to a single charge of securities fraud.
The plea revealed that Kamujula had used confidential customer usage data to purchase strategically and later sell Twilio call options, earning himself half a million dollars in profits.
Documents indicate that this insider data was sourced from a relative employed at Twilio during the infractions, which spanned from April 9 to April 30, 2020.
The U.S. Attorney’s Office clarified his profits exceeded $550,000.
Having been indicted by a federal grand jury on March 24, 2022, on two counts related to securities fraud, Kamujula opted to plead guilty to one of the counts on November 3, 2023, after which Judge Tigar dropped the second count at the sentencing hearing on the government’s motion.
As per court documents, the dismissed charge pertained to violations of federal laws and regulations governing securities transactions.
In addition to jail time and the forfeiture order, Judge Tigar handed down a three-year supervised release sentence, which Kamujula is expected to serve following his stint in prison. He’s been ordered to surrender to begin serving his term by April 15, allowing him a chance to put his affairs in order adequately before commencing the sentence handed down. The prosecution of the case was carried out by Assistant U.S. Attorney Garth Hire, with Aarian Beiti providing support. The case unfolded as a result of a focused investigation by the Federal Bureau of Investigation. At the trial’s closure, authorities, including the Securities and Exchange Commission’s San Francisco Regional Office and the Financial Industry Regulatory Authority (FINRA), received acknowledgments for their assistance.
