(HedgeCo.Net) The Securities and Exchange Commission has charged Yinghang \u201cJames\u201d Yang, a senior index manager at a globally recognized index provider, and his friend Yuanbiao Chen, a manager at a sushi restaurant, with perpetrating an insider-trading scheme that generated more than $900,000 in illegal profits.<\/p>\n\n\n\n
The SEC\u2019s complaint alleges that between June and October of 2019, Yang and Chen repeatedly purchased call or put options of publicly traded companies hours before public announcements that those companies would be added to or removed from a popular stock market index that Yang helped his employer manage. When the options increased in value after the announcements, Yang and Chen allegedly liquidated their options positions for a substantial profit. As alleged in the complaint, the defendants conducted all of the illegal trading in Chen\u2019s brokerage account, which allowed Yang to conceal his trading from his employer. The complaint alleges, for example, that a number of purchase orders were entered in Chen\u2019s brokerage account immediately following logins from IP addresses assigned to Yang\u2019s home address.<\/p>\n\n\n\n
\u201cFinancial professionals and other employees entrusted with confidential, market-moving information are prohibited from using that information for personal gain,\u201d said Richard R. Best, Director of the SEC\u2019s New York Regional Office. \u201cAs alleged in our complaint, Yang abused that trust when he used the information to enrich himself and Chen. Their attempts to disguise the unlawful trades by using Chen\u2019s account did not prevent the SEC from uncovering their scheme.\u201d<\/p>\n\n\n\n
The SEC\u2019s complaint, filed in the U.S. District Court for the Eastern District of New York, charges Yang and Chen with violating the antifraud provisions of the federal securities laws and seeks permanent injunctions and civil monetary penalties.<\/p>\n\n\n\n
In a parallel action, the U.S. Attorney\u2019s Office for the Eastern District of New York today announced criminal charges against Yang.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
(HedgeCo.Net) The Securities and Exchange Commission has charged Yinghang \u201cJames\u201d Yang, a senior index manager at a globally recognized index provider, and his friend Yuanbiao Chen, a manager at a sushi restaurant, with perpetrating an insider-trading scheme that generated more […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048],"tags":[],"class_list":["post-75701","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/75701","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=75701"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/75701\/revisions"}],"predecessor-version":[{"id":75702,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/75701\/revisions\/75702"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=75701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=75701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=75701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}