Yet another insider trading scheme has purportedly been uncovered by the Securities and Exchange Commission (SEC), this time in San Francisco, California. In a civil suit filed by the SEC on Friday, a former CFO and six others were charged with using nonpublic information to obtain over $8 million in illegal trading profits.
Chen Tang, the former CFO of an unnamed private equity fund, allegedly used confidential and private information available to him in his professional capacity in order to help generate the illegal trading profits. This was in addition to information gathered from his brother-in-law, Ronald Yee, who was employed at ValueAct Capital, a hedge fund. With the information from Yee and Tang, the seven now charged were able to generate the total aforementioned profit.
The SEC named as defendants three traders it says were acquaintances of Tang: Joseph Seto, Ming Siu and Zisen Yu. It also names his brother, James Tang, and Yee's brother, Eddie Yu.
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