Securities and Exchange Commission v. Ching Hwa Chen
Published: Apr. 19, 2014 | Result Date: Mar. 31, 2014 | Filing Date: Jan. 1, 1900 |Case number: 5:14-cv-01467-HRL Settlement – $138,068
Court
USDC Northern
Attorneys
Plaintiff
Erin E. Schneider
(U.S. Securities and Exchange Commission)
Michael S. Dicke
(Fenwick & West LLP)
Defendant
David J. Cohen
(Bay Area Criminal Lawyers PC)
Facts
The Securities and Exchange Commission filed charges against Ching Chen, based on allegations of insider trading.
Contentions
PLAINTIFF'S CONTENTIONS:
The SEC accused Chen of insider trading in the securities of Informatica Corp., a data integration company. In 2012, Informatica announced that its revenue would fall short of its revenue guidance. Before the announcement, Chen learned of it from his wife, Informatica's Senior Tax Director, when he overheard her business phone calls. Chen then misappropriated the information and bought out options and made short sales of Informatica's common stock. Chen made more than $138,000 in profits.
Result
Chen was ordered to pay disgorgement of $138,068, with interest of $4,297, and civil penalties of $138,068.
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390