One of the hallmarks of SEC Enforcement in recent years
has been aggressive insider trading actions. While the DOJ's criminal cases
often grab the headlines, the Commission's market abuse unit has been hard at
work, creating new investigative approaches which are often in the background
of those headlines.
As last week drew to a close, the Commission filed
another aggressive insider trading action. The case is based on little more
than the trading of the seven defendants. SEC v. Yang, Case No.
12-cv-02473 (N.D. Ill. Filed April 4, 2012).
The action centers on the March 27, 2012 announcement by
Xianfu Zhu, Chairman and CEO of Zhongpin Inc. that he had submitted a
non-binding proposal to take the company private by purchasing all the
outstanding shares. The price would be $13.50 per share, a 46% increase over
the closing price the prior day. The company is a Delaware Corporation with
headquarters in Changge City, Henan Province China. It is in the meat and food
Eight days after that announcement the Commission filed
its insider trading complaint naming seven defendants:
The core of the complaint is the trading of each
defendant in the period shortly before the potential deal announcement. During
that time period:
Generally, the purchases represented a significant
portion of the earnings and net worth of each defendant, at least based on the
information in the account opening documents. That information may, however, be
suspect in some instances since, for example, it appears that Defendant Yang
failed to accurately disclose his employment.
The complaint also alleges that there may have been
coordinated activity. Defendants Yang and Chang are alleged to have used a
computer with the same IP address to access brokerage accounts. Yet Defendant
Yang is alleged to reside in New York City while Defendant Chang resides in
Hong Kong. Similarly, Defendants Cang, Wu and Ni each are alleged to have
accessed their brokerage accounts using networks with the same IP address and
hardware with identical Media Access Control addresses. Defendants Cang and Ni
are alleged to reside in Hong Kong but Defendant Wu resides in the PRC.
The complaint calls the trading "suspicious." No source
of inside information is alleged other than "information and belief." The
allegations were however sufficient to secure a temporary freeze order. The
case is in litigation.
For more cutting edge commentary on
developing securities issues, visit SEC Actions, a
blog by Thomas Gorman.
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No possibility to complaint with Interactive brokers Asia and Salvatore Recco
Due to instability of Interactive Brokers systems and incompetence of "Salvatore Recco", I lost lot of money. I could have recovered it with a competent and professional broker. But Salvatore Recco(Head of Institutional Services Asia) was slow, not polite, unprofessional, giving lame excuses and possibly make big money on my back.
0/IB asia has no independent complaint officer(the CEO so wont bother to answer). If a senior IB staff is incompetent, you could not complain.No one is checking what they are doing in Asia, so manipulations of the records/transactions and wrong doing can be done by their staffs in Asia.
1/ zero transparency: you wont get any records ( transaction, transcripts,...). "Salvatore Recco" is blocking my access to any records because he made the mistakes.
2/ you will not be able to speak or see face to face, "Salvatore Recco"or a manager or a complaint officer in Hong Kong or Asia. They will just hide and send you a small potato guy.Thank to The small potato, I discovered that Salvatore Recco was lying and the staff might know his wrong doing.
3/ IB/Salvatire Recco will hide and refer you to a US complaint or any virtual manager in other continents.
4/ their methods in order that you give up your complaints, its their complaints tickets systems, it will take many months/ years instead of a day. They will tell you that they will get back to you within few days but instead give you lame excuses few month later. By that time all records could be modified by IB.
5/they have many others tricks so be careful, they can make you push to accept new rules at their favors when you later login,...
6/ they are not going to compensate you for their staffs mistakes for sure! Because They do not have any compensation fund aside in Asia !
On internet others complaints about "Salvatore Recco", if you have any problems with him or IB, please help me. I took a lawyer and complaint SFC and regulator without any answer!!!
Help me because "Salvatore Recco" is blocking my complaint as he was the one involved and possibly make a big money in my back!