Two employees of the SEC’s EDGAR filing system have been charged with insider trading after allegedly stealing confidential information and pocketing over $1 million, Brooklyn US Attorney Joseph Nocella announced.
Justin Chen, 31, and Jun Zhen, 29, both from Brooklyn, are accused of accessing non-public details about companies like Purple Innovation, Ondas Holdings, SigmaTron International, and Signing Day Sports between March and June 2025. Prosecutors say they bought shares before merger announcements or partnerships that spiked stock prices, then sold for large profits.
The FBI arrested Chen and Zhen Friday night at JFK Airport as they prepared to fly to Hong Kong. Chen worked as an EDGAR operator and assistant manager, while Zhen was an EDGAR operator and typeset manager — giving them early access to sensitive company disclosures.
Both face securities fraud charges carrying up to 25 years in prison. A federal judge ordered them held without bail during their Saturday court appearance in Brooklyn.
Lawyers for Chen and Zhen did not immediately respond to requests for comment.