Two men who worked for a private business that provides services for companies filing to the Securities and Exchange Commission’s EDGAR system, were charged with insider trading after allegedly pocketing $1 million by stealing non-public information obtained through their jobs. Justin Chen and Jun Zhen, both of Brooklyn, New York, were charged with obtaining non-public information about companies like Purple…
An SEC press release accompanying the civil complaint offered some reassurance. The hack’s take was a few million dollars. The flaw that allowed it to happen had been quickly patched. While the traders took “multiple steps to conceal their fraud,” the SEC’s “sophisticated analysis” cracked the case open. “Today’s action shows the SEC’s commitment and ability to unravel these schemes…
… In any event, the press release said that the board subsequently terminated Farnsworth and his pals & promised an 8-K filing. The only problem was that “[t]he Company’s SEC codes and SEC filings by the Company have been blocked by the Farnsworth Group,” so that Form 8-K couldn’t filed until those issues were resolved. Apparently, they still haven’t been…
The acronym of the day is EDGAR, which stands for Electronic Data Gathering Analysis and Retrieval. It’s a platform created and run by the Securities and Exchange Commission. It could also be known, though, as the latest hacking victim in this economy. The SEC made the disclosure late last night that it’d been breached and added that it’s possible some insider…
Neil H. MacBride, the U.S. Attorney for the Eastern District of Virginia, announced last week that he will be stepping down next month. In June 2010, MacBride made news when his district launched a novel financial fraud Task Force that asserted jurisdiction over most securities fraud because the SEC’s EDGAR database is physically housed in Alexandria, Va. via U.S. Attorney…
Yes, Virginia, you do have jurisdiction over securities fraud.