Ex-Yahoo executive pleads in insider-trading case

NEW YORK (AP) - A former Yahoo executive and a hedge fund manager have pleaded guilty in New York to an insider trading charge.

The pleas were entered Monday in separate proceedings by the ex-Yahoo executive, Robert Kwok, and the hedge fund manager, Reema Shah.

Prosecutors say Kwok gave Shah secrets about Yahoo's quarterly earnings and potential business transactions. They say Shah then traded on the information from at least January 2008 through July 2009. The 36-year-old Kwok is from Danville, Calif., while the 40-year-old Shah lives in Menlo Park, Calif.

Kwok pleaded guilty to one count of conspiracy to commit securities fraud. Shah pleaded guilty to the same charge as well as one count of securities fraud.

They both agreed to give up any gains from the transactions.

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