SEC Charges Massachusetts Man In Insider Trading Scheme

The SEC charged a Massachusetts trader for allegedly trading on material nonpublic information. The trader allegedly operated for over two years and earned approximately $1 million in illegal gains.

According to the SEC Complaint, Mr. Charlie Jinan Chen learned confidential information concerning VistaPrint N.V. ("VistaPrint") from a close family friend, who was employed by the company as a managerial accountant. The friend allegedly had access to material nonpublic information, including information about VistaPrint's quarterly earnings announcements before they became public. The Complaint alleges that Mr. Chen made a series of extremely risky and profitable trades in VistaPrint Securities over the course of two years, based on his knowledge of material nonpublic information. According to the SEC, Mr. Chen (i) repeatedly traded options and stocks in VistaPrint in advance of its quarterly earnings announcements, (ii) purchased options that were "out of money," and