The Securities and Exchange Commission charged research
scientist Fei Yan on Wednesday with insider trading on
confidential information about Mattress Firm Holding Corp.
and Stillwater Mining Company
following public announcements that they would be acquired by
other companies. Yan allegedly searched the internet for “how
sec detect unusual trade” before making a trade that the SEC
identified as suspicious through new market surveillance tools.
He also allegedly attempted to conceal the trades by using his
mother’s brokerage account. She lives in China and Fan also had
searched the internet for instructions on “insider trading in
an international account.” In a parallel action, the U.S.
Attorney’s Office for the Southern District of New York
announced criminal charges against Yan on Wednesday.