Archive · 29 Jun 2025
SEC EDGAR Workers Charged with Insider Trading, Pocketing $1 Million
Two men, Justin Chen and Jun Zhen, who worked for the SEC's EDGAR system, were caught doing something they shouldn't have.
They got secret information about companies that were planning big announcements, like mergers.
Before these announcements, they bought stocks in these companies.
When the announcements were made and the stock prices went up, they sold their shares for a lot of money.
They made over $1 million by doing this.
They were arrested at the airport while trying to leave the country.
They are now facing serious charges, potentially spending a long time in jail.
Two SEC EDGAR system workers were charged with insider trading.
Justin Chen and Jun Zhen allegedly made $1 million by using non-public info.
They obtained details on companies like Purple Innovation and Ondas Holdings.
The pair bought shares before announcements and sold them for profit.
Chen and Zhen were arrested at JFK airport while planning to leave for Hong Kong.
- Who
- Justin Chen and Jun Zhen
- What
- Two EDGAR system workers were charged with insider trading.
- When
- Between March and June 2025
- Where
- Brooklyn, New York, and at John F. Kennedy International Airport
- Why
- To profit from non-public information about company announcements.
- Accused
- Justin Chen, Jun Zhen
- Charges
- Securities Fraud
- Alleged Profit
- $1 million
- Companies Involved
- Purple Innovation Inc., Ondas Holdings Inc., SigmaTron International Inc., Signing Day Sports Inc.
- Location of Arrest
- John F. Kennedy International Airport
- Potential Prison Term
- 25 years