Disney Exec Arrested in Insider Trading Scandal

BURBANK: An administrative assistant at The Walt Disney Company has been arrested for attempting to sell insider information about the firm, including alleging that ABC is up for sale—claims that Disney has said "were and are false."

Bonnie Hoxie and her boyfriend, Yonni Sebbag, have been charged with conspiracy and wire fraud, reports indicate. If convicted, they each face up to 25 years in prison and a $250,000 fine. Hoxie worked in Disney’s corporate communications department. She and Sebbag had allegedly attempted to sell early access to Disney’s earnings information to undercover agents. In trying to secure a buyer for the information, Hoxie and Sebbag reportedly revealed that Disney is in "serious and advanced negotiations with two private equity firms to sell them the ABC network.”

Disney in a statement yesterday noted: “The reference in the complaint to conversations regarding the ABC Network were and are false." Disney says it is fully cooperating with the investigation.