Litigation Releases (Fan “Jocelyn” Yang; Jing Tian; Zijun Zhang; Shuchen Zhu; Chong Zhang; and Hanxiong Bo)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26650 / September 28, 2026

Securities and Exchange Commission v. Fan ("Jocelyn") Yang, et al., No. 1:26-cv-03366 (D.D.C. filed Sept. 28, 2026)

SEC Charges Indiana Couple and Four Others with Insider Trading

On September 28, 2026, the Securities and Exchange Commission filed insider trading charges against Fan "Jocelyn" Yang, a former accountant in the corporate development department of Cummins, Inc., and her husband, Jing Tian, a former engineer at Cummins, along with four others, for illegal tipping and trading ahead of the February 22, 2022 announcement that Cummins had agreed to acquire Meritor, Inc.

According to the SEC's complaint, filed in federal court in the District of Columbia, Yang tipped Tian, both of Carmel, Indiana, with material nonpublic information about the upcoming acquisition she learned as a member of Cummins' corporate development department. Tian, with Yang's knowledge, allegedly passed the information to a close friend, who then shared the information with his wife, Zijun Zhang, of Chengdu, Sichuan, China. The complaint alleges that Zijun Zhang used the information to purchase Meritor securities ahead of the acquisition announcement and shared the information with her friend, Shuchen Zhu, of Chantilly, Virginia. The complaint further alleges Zhu also purchased Meritor securities ahead of the acquisition announcement and passed the information along to his friends, Chong Zhang, of Bellevue, Washington, and Hanxiong Bo, of North Hollywood, California, both of whom traded Meritor stock ahead of the acquisition announcement. Zijun Zhang, Shuchen Zhu, Chong Zhang and Hanxiong Bo collectively made over $500,000 in illicit profits by trading Meritor securities based on the material nonpublic information that originated from Yang.

The U.S. Attorney's Office for the District of Columbia previously filed criminal charges against Yang and Tian in connection with their illicit tipping of material nonpublic information ahead of the acquisition announcement.

Yang and Tian have consented to the entry of final judgments, subject to court approval, permanently enjoining them from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and agreed to pay civil penalties in amounts to be determined by the Court upon motion of the Commission. Zhang, Zhu, Chong Zhang and Bo have also consented, without admitting the allegations in the SEC's complaint, to the entry of final judgments, subject to court approval, enjoining them from violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The final judgment against Zhang also orders her to pay $143,034 in disgorgement plus prejudgment interest of $12,882 and a civil penalty of $143,034. The final judgment against Zhu orders him to pay $172,366 in disgorgement, a civil penalty of $119,191 and enjoins him from, directly or indirectly, acting as or being associated with a broker, dealer, or investment adviser. The final judgment against Chong Zhang orders him to pay $146,253 in disgorgement and a civil penalty of $48,751. And the final judgment against Bo orders him to pay $38,955 in disgorgement plus prejudgment interest of $3,508 and a civil penalty of $38,955.

The case originated from the SEC Market Abuse Unit's Analysis and Detection Center, which uses data analysis tools to detect suspicious trading patterns.

The SEC's investigation was conducted by Han Nguyen, John Rymas, Matthew Wong and Julia C. Green and supervised by Joseph G. Sansone, all of the Division of Enforcement's Market Abuse Unit. Trial counsel Judson Mihok assisted with the matter under the supervision of Gregory R. Bockin of the SEC's Philadelphia Regional Office. The SEC appreciates the assistance of the U.S. Attorney's Office for the District of Columbia, the Federal Bureau of Investigation, and the Financial Industry Regulatory Authority.