Litigation Releases (Jun Zhen)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26684 / November 12, 2026

Securities and Exchange Commission v. Chen et al., No. 25-cv-4580 (E.D.N.Y. filed Aug. 18, 2025)

SEC Obtains Final Consent Judgment as to Jun Zhen in Connection with Alleged $2 Million Insider Trading Scheme

On November 9, 2026, the United States District Court for the Eastern District of New York entered a final consent judgment as to defendant Jun Zhen in connection with his role in an alleged insider trading scheme.

According to the SEC's complaint, filed on August 18, 2025, Zhen and another individual were employed by a company that assisted its clients with making public filings in the SEC's EDGAR system. Through that employment, Zhen and his colleague allegedly obtained material nonpublic information about clients' forthcoming announcement of important events, including mergers and earnings results. From around January 2025 to June 2025, despite their employer's prohibition on engaging in insider trading, Zhen and his colleague allegedly traded on the basis of material nonpublic information on at least 13 occasions and generated more than $2.2 million in ill-gotten profits.

On March 26, 2026, the Court entered a partial consent judgment against Zhen permanently enjoining him from violating the antifraud provisions of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. The final judgment, entered on November 9, 2026, reimposed the injunctive relief and ordered him liable for disgorgement of $500,619 and prejudgment interest thereon of $8,832, payment of which is deemed satisfied by the order of forfeiture entered against him in the parallel criminal action, United States v. Chen and Zhen, 25 cr. 303 (E.D.N.Y.).

The SEC's investigation originated from the Enforcement Division's Market Abuse Unit, which used Consolidated Audit Trail (CAT) data to analyze Zhen and his colleague's suspicious trading activity.

The SEC's investigation was conducted by David Bennett, John S. Rymas, and Lindsay S. Moilanen of the Market Abuse Unit and supervised by Market Abuse Unit Chief Joseph G. Sansone. The SEC's litigation was led by Ms. Moilanen and supervised by Christopher Colorado of the SEC's New York Regional Office. The SEC appreciates the assistance of the U.S. Attorney's Office for the Eastern District of New York and the FBI.