Walt Disney, media and consumer giant, is in advanced talks to sell is struggling ABC TV network, an insider leaked the information to the hedge funds.

According to criminal and civil insider trading charges filed on Wednesday, as assistant to the Disney’s head of corporate communication gave confidential information to her boyfriend, who tried to sell it to several players.

FBI agents in Los Angeles arrested the Hoxie-Yonni couple in a sting operation, the officials related to the case said. The agent contacted Sebbage, who in one mail said he had learned that the company was in discussion to sell ABC.

Well, insider information might be wrong, but market signaled positively about the possible sellout of the ABC. Shares of Disney were up 3.2% to $33.35 in afternoon trading, but as the news of charging the employee reached it went passive on Disney shares.
 

An analyst with research firm said, “It is total embarrassment for Disney, but it can happen to any company. But what is interesting from the share value perspective is if that are selling ABC.”

Hoxie was employed as secretary to Disney’s Head of corporate communications between March 2010 and May 25, 2010.

In an statement Attorney said, “In this capacity, Hoxie obtained material, nonpublic information, including Disney’s quarterly earnings statements.”

“Then, in violation of her duties of trust and confidence, she disclosed the information to Sebbage, who in turn disclosed the information to outside investors for the purpose of trading advance of the official public announcement of the Disney’s earnings,” the statement said.

The criminal complaint filed in Manhattan federal court in New York charged both with conspiracy and wire fraud in allegations of illegal insider trading. The charges carry a maximum possible sentence of 20 years imprisonment if found guilty.
They are scheduled to make an initial appearance before a judge in Los Angeles later on Wednesday.