Hoxie used her access to attempt to sell information to hedge funds that Disney was in talks to sell its ABC network. In emails to hedge funds, Hoxie and an accomplice wrote:
Hi, I have access to DISNEY’S (DIS) quarterly earnings report before its release on 5/3/10. I am willing to share this information for a fee that we can determine later. I am sorry but I can’t disclose my identity for confidentiality reasons but we can correspond by email if you would like to discuss it. I count on your discretion as you can count on mine.
“Today’s arrests…suggest that the integrity of the securities exchanges can be compromised not only by top executives, but also by anyone entrusted with material, non-public information,” Preet Bharara, the U.S. Attorney in Manhattan told The Wall Street Journal.
TVNewser has a statement from ABC, which reads in part, “conversations regarding the ABC Network were and are false.”