(Bloomberg) — Two males who labored for the Securities and Alternate Fee’s EDGAR public submitting system have been charged with insider buying and selling after allegedly pocketing $1 million by stealing personal data obtained by way of their jobs.
Justin Chen and Jun Zhen, each of Brooklyn, New York, have been charged in a federal criticism with acquiring materials, personal details about corporations like Purple Innovation Inc., Ondas Holdings Inc., SigmaTron Worldwide Inc., and Signing Day Sports activities Inc. by way of their work at EDGAR, in accordance with Brooklyn US Lawyer Joseph Nocella.
Prosecutors say that between March and June 2025 the pair engaged in a scheme to acquire details about these corporations, which introduced that they had entered into merger agreements or partnerships “that resulted in vital will increase within the share worth of every firm’s inventory.”
Chen, 31, and Zhen, 29, bought shares within the corporations earlier than the bulletins, “and offered these shares at a big revenue instantly after the announcement,” in accordance with a criticism filed in federal courtroom in Brooklyn. “In complete, Chen and Zhen have made a revenue of greater than $1 million from their buying and selling.”
Brokers with the Federal Bureau of Investigation arrested Chen and Zhen Friday night time at John F. Kennedy Worldwide Airport as they have been planning to board a flight to Hong Kong, stated John Marzulli, a spokesman for Nocella.
Chen labored as an EDGAR operator and assistant supervisor whereas Zhen labored as an EDGAR operator and typeset supervisor, prosecutors stated. The 2 had entry to the corporate bulletins earlier than they have been filed.
Each males are charged with securities fraud, which carries a jail time period of so long as 25 years, prosecutors stated.
Chen and Zhen made their preliminary courtroom appearances in federal courtroom in Brooklyn on Saturday earlier than US Justice of the Peace Decide Vera Scanlon, who ordered them held with out bail.
Chris Wright, a lawyer for Zhen, and Charles Millioen, a lawyer for Chen, didn’t instantly return electronic mail messages looking for remark about their purchasers.
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