SEC Charges Ex-Goldman Sachs Employee with Insider Trading
- Yue Hun abused his access to confidential advisory information gained while developing a misconduct monitoring system.
The Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission has charged a former associate in Goldman Sachs’ Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term department with insider trading using confidential information regarding pending mergers.
$450,000 in illegal profits
The watchdog said in a statement that Yue Han generated personal gains of $450,000 using information contained in emails sent and received by Goldman investment bankers advising companies preparing to merge. Han gained access to these emails while designing a surveillance software system that was to monitor employee conduct and detect possible violations such as insider trading.
Han then used this illegally obtained information to buy stock, including “out of the money” call options – options where the current market price of the security is higher than the strike price – of at least four companies about to be acquired. These included Yodlee Inc., Zulily Inc., Rentrak Corporation, and KLA-Tencor Corp.
SEC filed a complaint against Han at federal court in Manhattan and froze his assets. The Co-Chief of the SEC Enforcement Division’s Market Abuse Unit, which was responsible for the investigation against Han, said: “We allege that Han’s employer gave him access to confidential information so that he could help the firm detect and deter illegal activity, but he betrayed that trust by using the information for his own profit.” Joseph G. Sansone added that, “fortunately the SEC staff’s probing analysis uncovered Han’s suspicious trading and enabled us to obtain an asset freeze before he could dissipate his ill-gotten gains.”
The Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission has charged a former associate in Goldman Sachs’ Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term department with insider trading using confidential information regarding pending mergers.
$450,000 in illegal profits
The watchdog said in a statement that Yue Han generated personal gains of $450,000 using information contained in emails sent and received by Goldman investment bankers advising companies preparing to merge. Han gained access to these emails while designing a surveillance software system that was to monitor employee conduct and detect possible violations such as insider trading.
Han then used this illegally obtained information to buy stock, including “out of the money” call options – options where the current market price of the security is higher than the strike price – of at least four companies about to be acquired. These included Yodlee Inc., Zulily Inc., Rentrak Corporation, and KLA-Tencor Corp.
SEC filed a complaint against Han at federal court in Manhattan and froze his assets. The Co-Chief of the SEC Enforcement Division’s Market Abuse Unit, which was responsible for the investigation against Han, said: “We allege that Han’s employer gave him access to confidential information so that he could help the firm detect and deter illegal activity, but he betrayed that trust by using the information for his own profit.” Joseph G. Sansone added that, “fortunately the SEC staff’s probing analysis uncovered Han’s suspicious trading and enabled us to obtain an asset freeze before he could dissipate his ill-gotten gains.”