SEC Freezes Assets of Four Chinese Citizens Charged With Insider Trading

On December 5, 2011, the Securities and Exchange Commission charged four Chinese citizens and a Chinese-based entity with insider trading and obtained an emergency court order to freeze their assets after they reaped more than $2.7 million in profits by trading in advance of a recent public announcement of a merger agreement between London-based Pearson plc and Beijing-based Global Education and Technology Group, Ltd…. On November 18, the last trading day before the acquisition announcement, their purchases accounted for more than 35 percent of the entire days trading volume for the companys shares, which trade on the NASDAQ.

Read more: SEC Freezes Assets of Four Chinese Citizens Charged With Insider Trading — SEC Litig. Release