MIT research associate charged with insider trading
Source: Associated Press
Updated 7:00 pm, Wednesday, July 12, 2017
NEW YORK (AP) An engineering research associate at the Massachusetts Institute of Technology has been arrested on insider trading charges filed in New York.
Authorities said Wednesday that Fei Yan was charged with earning $120,000 in illegal profits from secrets stemming from two corporate mergers last year.
The 31-year-old Chinese citizen, arrested at his Cambridge, Massachusetts, home, was freed on $500,000 bail after appearing in Boston federal court. His assistant public defender did not immediately comment.
Federal prosecutors in New York City say Yan got his illegal tips from his spouse, a lawyer at an international law firm.
Read more: http://www.chron.com/news/education/article/Massachusetts-lawyer-s-spouse-charged-with-11284726.php
Honeycombe8
(37,648 posts)I do some investing for my retirement. Mergers & acquisitions are frequently suspected before they happen. I could invest in some, myself, before they happen. Of course, the experts I read aren't positive they'll happen, but there are usually signs. Even before there are signs, experts know that a big co. would do well to purchase such & such smaller company. In other words, they know the strengths & weaknesses of companies & so will know whether a purchase would be beneficial. If THEY think that, the executives of the co. are probably considering that, too.
Walgreens may or may not purchase Rite-Aid, for instance. Long before the announcement, experts had predicted that Walgreens would gobble up Rite-Aid. It made sense. If I had bought Rite-Aid stock, and I worked for Rite-Aid, and the purchase went through & I made a bundle on Rite-Aid stock tripling, someone might think I had insider information.
Or maybe he did have insider info.
Hassin Bin Sober
(26,271 posts)I'm assuming she had some insider knowledge.
I made a big hit on the Lotus acquisition by IBM. My roommate worked for Lotus and took me with him on a company sales trip to Cancun.
I sat through all the ra ra meetings and was so impressed I decided to buy a bunch of stock. Less than a month later they were bought out by IBM.
My boyfriend at the time was in the bond business and was convinced I was going to prison.
I'm assuming this guy probably bought options. Maybe not since that would probably be at the top of the list he is accused of finding on google on how not to get caught.
This guy knew he was guilty:
Prosecutors say Yan's illegal trades came after he studied online how to avoid law enforcement detection. They say he read an article entitled: "Want to Commit Insider Trading? Here's How Not to Do It."
Honeycombe8
(37,648 posts)SergeStorms
(18,882 posts)a Public Defender?
With the case load Public Defenders must carry it wouldn't be very smart to put your future in their hands.
Maybe he just used the Asst. PD for the arraignment, and will seek private council afterward. It just seems very odd.
VermontKevin
(1,473 posts)He could not buy a better federal defense.
SergeStorms
(18,882 posts)thanks for that. I didn't realize there was a difference.
not fooled
(5,791 posts)for a House of Representative member. Then he can insider trade to his heart's content, legally.