SEC’s EDGAR workers are charged with internal trading

Justin Chen and John Chen, both of them from Brooklyn, New York, were charged with a federal complaint of obtaining materials and inappropriate information about companies such as Purple Innovation Inc. , Ondas Holdings Inc. Sigmatron International Inc.

Prosecutors say that between March and June 2025, the couple participated in a plan to obtain information about these companies, which announced that they had entered into integration or partnership agreements “that led to great increases in the share price of each company.”

Chen, 31, and Chen, 29, bought shares in companies before the advertisements, “and these shares were sold with great profit immediately after the announcement,” according to a complaint filed at the Federal Court of Brooklyn. “In total, Chen and Chen have profits of more than one million dollars from their trading.”

John Marzoli, a spokesman for the Nusela, said that the FBI agents arrested Chen and Chen on Friday night at John F. Kennedy International because they were planning to take a trip to Hong Kong.

Chen worked as an Edgar operator and a manager while Chen was working as an Edgar operator and a manager, according to the prosecutors. The two were able to reach the company’s ads before submitting them.

Prosecutors said that both men are accused of fraud in securities, which carries a prison sentence for up to 25 years.

Chen and Chen appeared in front of the Brokelin Federal Court on Saturday before the American judge, Vera Scanlon, who ordered them to keep them without a bail.

Chris Wright, Laen’s lawyer, and Charles Melioine, Chen’s lawyer, did not immediately return emails seeking to comment on their customers.