SEC Obtains Final Judgment Against Investment Banker Charged in Insider Trading Scheme

Litigation Release No. 24634 / October 2, 2019

Securities and Exchange Commission v. Woojae ("Steve") Jung, et al., Civil Action No. 1:18-cv-04811-JGK (U.S. District Court for the Southern District of New York)

On September 30, 2019, a federal court judge entered a final judgment in the SEC's action against Woojae ("Steve") Jung, a former employee of a prominent investment bank charged with repeatedly using his access to highly confidential information in order to place illicit and profitable trades in advance of deals on which the bank was providing investment banking services.

The SEC filed its action in May 2018 and Jung was also charged criminally by the U.S. Attorney's Office for the Southern District of New York. In the parallel criminal case, Jung pled guilty to securities fraud and was sentenced to a term of incarceration of 3 months, forfeiture to the United States in the amount of $130,000, a $30,000 fine, and 2 years of supervised release.

Jung settled the SEC's charges and consented to a final judgment 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 and ordering him liable for disgorgement of $130,000, but providing that the disgorgement will be deemed satisfied by the entry of a forfeiture order in the parallel criminal case against Jung. Jung also consented to an order by the SEC imposing securities industry and penny stock bars. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York, the Federal Bureau of Investigation, and the Financial Industry Regulatory Authority.