TWO MEN CAUGHT IN $2 MILLION INSIDER TRADING SCAM VIA SECRET EMAILS!

U.S. Securities and Exchange Commission Litigation Release No. 26380, dated August 18, 2025.

The SEC charged two former employees of a company that assists clients with SEC filings for allegedly using material nonpublic information to trade their employer's clients' stocks. The defendants allegedly made over $2 million in illicit profits from at least 13 trades based on confidential merger and earnings information accessed through their work.

In Plain English

Imagine you work at a company that helps other companies prepare important announcements for the government, like when they're going to merge or report their profits. You get to see these announcements before anyone else. Two people who worked at such a company used this secret information to buy and sell stocks of those other companies, making over $2 million. Now, they're in trouble with the law for this insider trading.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Accessing Confidential Information Justin Chen and Jun Zhen worked for EdgarAgents LLC, a company that helps clients file documents with the SEC. As employees, they had access to a shared email account where clients sent sensitive, nonpublic information about upcoming events like mergers and earnings results.
2. Prohibited Trading Despite their employer's strict prohibition against insider trading and the need to keep client information confidential, Chen and Zhen allegedly planned to use this material nonpublic information (MNPI) for their own benefit.
3. Executing the Scheme From January to June 2025, Chen and Zhen allegedly traded on the MNPI they obtained from the Inbound Email Account on at least 13 separate occasions.
4. Generating Illicit Profits Through this insider trading scheme, Chen and Zhen together unlawfully obtained ill-gotten profits exceeding $2.2 million.
5. Attempted Escape After profiting from their scheme, Chen and Zhen attempted to leave the country, but were arrested before they could flee, in connection with the allegations.

The Enforcement Action

On August 18, 2025, the SEC filed insider trading charges against Justin Chen and Jun Zhen in the U.S. District Court for the Eastern District of New York. The SEC seeks disgorgement with prejudgment interest, civil penalties, and injunctions against future violations. A parallel criminal action was brought by the U.S. Attorney's Office for the Eastern District of New York on June 28, 2025.

Original SEC litigation release ↗ · Browse all cases