Justin Chen

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26634 / September 9, 2026

Securities and Exchange Commission v. Chen et al., No. 25-cv-4580 (E.D.N.Y. filed Aug. 18, 2025)

SEC Obtains Final Consent Judgment as to Justin Chen in Connection with Alleged $2 Million Insider Trading Scheme

On September 8, 2026, the United States District Court for the Eastern District of New York entered a final consent judgment as to defendant Justin Chen in connection with his role in an alleged insider trading scheme.

According to the SEC's complaint , filed on August 18, 2025, Chen and another individual were employed by a company that assisted its clients with making public filings in the SEC’s EDGAR system. Through that employment, Chen and his colleague allegedly obtained material nonpublic information about clients’ forthcoming announcement of important events, including mergers and earnings results. From around January 2025 to June 2025, despite their employer’s prohibition on engaging in insider trading, Chen and his colleague allegedly traded on the basis of material nonpublic information on at least 13 occasions and generated more than $2.2 million in ill-gotten profits.

On March 16, 2026, the Court entered a partial consent judgment against Chen permanently enjoining him from violating the antifraud provisions of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. The final judgment, entered on September 8, 2026, reimposed the injunctive relief and ordered him liable for disgorgement of $1,828,442 and prejudgment interest thereon of $32,361, payment of which is deemed satisfied by the orders of restitution and forfeiture entered against him in the parallel criminal action, United States v. Chen, 25 cr. 303 (E.D.N.Y.).

The SEC's investigation originated from the Enforcement Division's Market Abuse Unit, which used Consolidated Audit Trail (CAT) data to analyze Chen and his colleague’s suspicious trading activity.

The SEC's investigation was conducted by David Bennett, John S. Rymas, and Lindsay S. Moilanen of the Market Abuse Unit and supervised by Market Abuse Unit Chief Joseph G. Sansone. The SEC's litigation is being led by Ms. Moilanen and supervised by Christopher Colorado of the SEC’s New York Regional Office. The SEC appreciates the assistance of the U.S. Attorney's Office for the Eastern District of New York and the FBI.