Justin Chen and Jun Zhen, two employees of the SEC's EDGAR public filing system, were arrested for insider trading after making over $1 million by exploiting confidential information from their roles. They allegedly engaged in trading shares of companies involved in significant merger agreements before those announcements were public, resulting in substantial profits. Both men face securities fraud charges, which could lead to up to 25 years in prison. They were apprehended at JFK Airport while preparing to leave for Hong Kong and were denied bail during their court appearance.
Prosecutors say that between March and June 2025 the pair engaged in a scheme to obtain information about these companies, which announced they had entered into merger agreements or partnerships".
Chen and Zhen purchased shares in the companies before the announcements, and sold those shares at a significant profit immediately after the announcement."
Collection
[
|
...
]