Published: Fri, July 14, 2017
Sci-tech | By Carrie Guzman

Insider trader arrested after Googling "insider trading"

Insider trader arrested after Googling

"Here's How Not to Do It". "Here's How Not to Do It" before buying Stillwater options.

An MIT postdoctoral staffer was arrested and charged with insider trading after he allegedly searched online for tips on committing the crime. He turned his illegal profit by purchasing and selling options in Stillwater Mining Co. and Mattress Firm Holding Corp., according to complaints filed by the US Attorney's Office for the Southern District of NY and the Securities and Exchange Commission. After a federal court hearing in Boston, authorities released Yan on a $500,000 unsecured bond. His assistant public defender did not immediately comment.

Yen setup a brokerage account using his mother's name and made several trades in Stillwater stock, all of which were profitable. The London-based law firm announced it suspended Yan's wife, and will be cooperating with the SECs investigation.

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Authorities said that beginning in August, Yan's wife became involved in working on the Stillwater deal in her role as an associate in the NY offices of the law firm retained by Sibanye to represent it in the negotiations.

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Federal prosecutors in Manhattan accused Mr Yan of trading previous year on inside information concerning a planned $2.2 billion purchase of Stillwater Mining by South Africa's Sibanye Gold.

Yan purchased holdings in Mattress Firm and Stillwater Mining, both firms that his wife's company was working with on acquisition deals. The SEC alleges Yan made over $9,700 from his Mattress Firm shares and nearly $110,000 from the Stillwater call options.

The court papers allege the accused ran searches with phrases such as "how sec detect unusual trade" and "insider trading with worldwide account".

He now faces three fraud charges: two for securities fraud and one for wire fraud.

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