SEC Staffers Charged in $1 Million Insider Trading Scheme

Federal prosecutors allege that Justin Chen, 31, and Jun Zhen, 29, exploited their privileged access to the SEC’s EDGAR system to trade ahead of market-moving announcements—pocketing more than $1 million in three months.

“In total, Chen and Zhen have made a profit of more than $1 million from their trading,” the criminal complaint states.

Between March and June 2025, the pair allegedly sifted through yet-to-be-published documents and bought shares in four small-cap names—Purple Innovation (NASDAQ: PRPL), Ondas Holdings (NASDAQ: ONDS), SigmaTron International (NASDAQ: SGMA), and Signing Day Sports (NYSE American: SGN).

Selkirk Copper Mines — sponsored Sponsored · Selkirk Copper Mines

Prosecutors say Chen, an EDGAR assistant manager, and Zhen, a typeset manager, “purchased shares before the announcements and sold those shares at a significant profit immediately after,” transforming EDGAR’s regulatory pipeline into what one enforcement official privately called “their own minute-perfect trading terminal.”

The scheme unraveled Friday night when FBI agents arrested both men at JFK Airport moments before they boarded a flight to Hong Kong. The attempted departure, prosecutors argued in court Saturday, underscored their flight risk, leading Judge Vera Scanlon ordering them held without bail.

Each faces one count of securities fraud carrying up to 25 years in prison.


Information for this briefing was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

The Gold & Copper Stocks Everyone Keeps Asking About | Oct. 12-16 – Weekly Mining Mailbag

Similar Gold Mines Are Valued 10X Higher. Why Not This One? | JW Dumont – Granada Gold Mine

The US Interest Bill Gold Can’t Ignore | Peter Grandich

Recommended

Blue Jay Gold Signs Ocean Partners Deal to Ship Steller Stockpiles Through 2027

Krait Critical Minerals Signs Option for Historical Nevada King Antimony Mine

Related News

SEC’s GameStop Report Refutes Short-Selling Theories, Criticizes PFOF and Gamification of Markets

The much-awaited SEC report on the Reddit-fuelled GameStop trading mania has finally been released, refuting...

Tuesday, October 19, 2021, 04:27:00 PM

Court Weighs Binance’s Fate as SEC Continues To Investigate

The Securities and Exchange Commission (SEC) continues its investigation into Binance and its founder, Changpeng...

Tuesday, November 28, 2023, 09:41:26 AM

SEC Charges Bittrex For Operating An Unregistered Exchange As Firm Moves To Exit US

Bittrex, previously one of the largest US-based crypto platforms, announced earlier this month that it...

Monday, April 17, 2023, 11:29:26 AM

Robinhood Chief Legal Officer Emerges as SEC Chair Contender If Trump Wins

Dan Gallagher, the Chief Legal Officer of popular online brokerage firm Robinhood Markets (NASDAQ: HOOD),...

Monday, October 7, 2024, 12:34:58 PM

SEC Charges Ex-New Jersey Corrections Lieutenant For Crypto Scam

The U.S. Securities and Exchange Commission (SEC) has taken legal action against John A. DeSalvo,...

Thursday, August 24, 2023, 12:47:00 PM