Final Judgment Against Jun Zhen in EDGAR Insider Trading Scheme: Ordered to Pay $500,619 in Disgorgement
The U.S. Securities and Exchange Commission (SEC) announced on November 12 that the U.S. District Court for the Eastern District of New York entered a final consent judgment on November 9 against Jun Zhen, resolving his role in an alleged insider trading scheme.
According to the SEC's complaint, filed on August 18, 2025, Zhen and another individual were employed by a company that assisted its clients with making public filings in the SEC's EDGAR system. Through that employment, they allegedly obtained material nonpublic information about clients' forthcoming announcements of important events, including mergers and earnings results. From around January 2025 to June 2025, despite their employer's prohibition on engaging in insider trading, Zhen and his colleague allegedly traded on the basis of that information on at least 13 occasions and generated more than $2.2 million in ill-gotten profits across the scheme.
On March 26, 2026, the court entered a partial consent judgment against Zhen permanently enjoining him from violating the antifraud provisions of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. The final judgment, entered on November 9, 2026, reimposed the injunctive relief and ordered him liable for disgorgement of $500,619 and prejudgment interest of $8,832, payment of which is deemed satisfied by the order of forfeiture entered against him in the parallel criminal action, United States v. Chen and Zhen, 25 cr. 303 (E.D.N.Y.).
The SEC said its investigation originated from the Enforcement Division's Market Abuse Unit, which used Consolidated Audit Trail (CAT) data to analyze the suspicious trading activity. The SEC thanked the U.S. Attorney's Office for the Eastern District of New York and the FBI for their assistance. (Source: U.S. Securities and Exchange Commission)
Source: U.S. Securities and Exchange Commission
Published by GSM · USA (original Chinese edition)
Photo: 图：位于华盛顿的美国证券交易委员会（SEC）总部大楼（四级图库联邦核心包固定图），本案由 SEC 市场滥用组调查。 / Image: U.S. Securities and Exchange Commission headquarters building in Washington (fixed image from the federal core asset pack); the case was investigated by the SEC Market Abuse Unit.
