U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19648 / April 10, 2006
SEC v. Xiangsha Feng, Civil Action No. 06C 1817 (N.D. IL)
SEC Files Settled Insider Trading Case
On April 7, the Honorable Rebecca R. Pallmeyer, U.S. District Court Judge for the Northern District of Illinois, entered an Order permanently enjoining Xiangsha Feng (Feng), a resident of Vernon Hills, Illinois, from future violations of the antifraud provisions of the securities laws, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder (Order), in connection with insider trading in the securities of Telular Corporation (Telular). The Order also requires Feng to disgorge her trading profits of $14,568 and to pay a one-time civil penalty equal to her trading profits.
The United States Securities and Exchange Commission (Commission) filed its Complaint on April 3. The Commission's complaint alleges that, on three occasions from at least April 2003 through June 2004, Feng learned material, non-public information about Telular's business from her husband, a Telular vice president. Without her husband's knowledge, Feng improperly traded in Telular stock based on that information and realized $14,568 in illegal insider trading profits. Feng agreed to the entry of the Order without admitting or denying the allegations in the Complaint. The Commission acknowledges the assistance and cooperation of the National Association of Securities Dealers Market Regulation Section of Surveillance and Compliance.