Pleasanton Man Sentenced For Insider Trading

PLEASANTON, CA — A Pleasanton man was sentenced to 18 months in prison for insider trading, according to the U.S. Department of Justice.

Srinivasa Kakkera learned from associate Amit Bhardwaj that Bradwaj’s employer Lumentum, a San Jose-based telecommunications firm, was considering acquiring laser technology firm Coherent, Inc. Bhardwaj, Kakkera, and Abbas Saeedi all purchased and traded Coherent stock, according to the indictments and statements in court proceedings.

In October 2021, Bhardwaj learned that Lumentum was in confidential talks with communications technology firm Neophotonics. The three men all traded in Neophotonics securities, and Kakkera told friends and family to purchase Neophotonics securities. After Neophotonic stock price increased following the Lumentum acquisition in November 2021, the three men closed their positions in Neophotonics securities and made a combined $4.3 million. Kakkera made $2.45 million.

Bhardwaj, Kakkera, and Saeedi were subpoenaed by the FBI in March 2022, and met to discuss potential false stories and documents to cover up their trading.

In addition to the prison sentence, Kakkera has been ordered to forfeit all his earnings.

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