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Former Qualcomm Executive Charged With Insider Trading
Author: Scarinci Hollenbeck, LLC
Date: October 3, 2013
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Insider trading has become a hot button issue for the Securities and Exchange Commission (SEC). From 2009 through 2012, the agency filed more insider trading actions (168 total) than in any three-year period in the agency’s history.
The SEC’s pace has not slowed in 2013. Most recently, a former executive of Qualcomm Inc. was hit with criminal and administrative charges in connection with an insider-trading scheme.
According to the SEC, Jing Wang, who once led global business operations at Qualcomm, used a secret offshore brokerage account to illegally trade on non-public information that he learned through his position with Qualcomm. His long-time investment adviser, Gary Yin, allegedly helped facilitate the transactions. The two men then attempted to conceal the trades by attributing them to Wang’s brother.
“Wang violated his duty as an insider to protect confidential information when he made timely illegal trades ahead of major announcements to the detriment of other Qualcomm shareholders who did not have the same information,” said Michele Wein Layne, Director of the SEC’s Los Angeles Regional Office. “Wang and Yin went to extraordinary lengths to conceal their trading and cover it up afterwards, but despite their expansive efforts they still wound up in law enforcement’s crosshairs.”
Given the intense scrutiny, companies should make sure that they have comprehensive policies and procedures in place to monitor trading compliance. As shown in the case against hedge fund trader Steven Cohen, the SEC is authorized to not only pursue tipsters and traders, but also any “controlling person” who knowingly or recklessly fails “to establish, maintain, or enforce any policy or procedure” against insider trading.
If you have any questions about this case or would like to discuss the legal issues involved, please contact me, Jay Surgent, or the Scarinci Hollenbeck attorney with whom you work.
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Former Qualcomm Executive Charged With Insider Trading
Author: Scarinci Hollenbeck, LLC
Insider trading has become a hot button issue for the Securities and Exchange Commission (SEC). From 2009 through 2012, the agency filed more insider trading actions (168 total) than in any three-year period in the agency’s history.
The SEC’s pace has not slowed in 2013. Most recently, a former executive of Qualcomm Inc. was hit with criminal and administrative charges in connection with an insider-trading scheme.
According to the SEC, Jing Wang, who once led global business operations at Qualcomm, used a secret offshore brokerage account to illegally trade on non-public information that he learned through his position with Qualcomm. His long-time investment adviser, Gary Yin, allegedly helped facilitate the transactions. The two men then attempted to conceal the trades by attributing them to Wang’s brother.
“Wang violated his duty as an insider to protect confidential information when he made timely illegal trades ahead of major announcements to the detriment of other Qualcomm shareholders who did not have the same information,” said Michele Wein Layne, Director of the SEC’s Los Angeles Regional Office. “Wang and Yin went to extraordinary lengths to conceal their trading and cover it up afterwards, but despite their expansive efforts they still wound up in law enforcement’s crosshairs.”
Given the intense scrutiny, companies should make sure that they have comprehensive policies and procedures in place to monitor trading compliance. As shown in the case against hedge fund trader Steven Cohen, the SEC is authorized to not only pursue tipsters and traders, but also any “controlling person” who knowingly or recklessly fails “to establish, maintain, or enforce any policy or procedure” against insider trading.
If you have any questions about this case or would like to discuss the legal issues involved, please contact me, Jay Surgent, or the Scarinci Hollenbeck attorney with whom you work.