Capitol One has accused former employees Bonan Huang and Nan Huang (no relation) of using company databases to engage in insider trading.
The cases allege that the two partook in possibly thousands of searches to use company knowledge to trade before information was made public.
Reuters discusses this topic more.
The civil trial of Nan Huang follows a complaint by the U.S. Securities and Exchange Commission a year ago against both him and another former Capital One employee, Bonan Huang.
The SEC said the analysts, who investigated potential credit card fraud, used the company’s non-public data to trade in shares of consumer retail companies ahead of sales and earnings reports.
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The SEC sued Nan Huang and Bonan Huang in January 2015 alleging they made hundreds, if not thousands, of keyword searches on their company’s private database for sales data on at least 170 publicly traded companies from November 2013 to January 2015.
[…]
[The Huangs] began with a $147,000 investment and made roughly $2.8 million from the trades, a three-year return of 1,819 percent, the SEC said.
Nan Huang refuses to testify or attend court.
Photo by Michelangelo Carrieri via Flickr CC License
