On September 28, 2026, the Securities and Exchange Commission filed insider trading charges in the U.S. District Court for the District of Columbia against six people in connection with securities trades made before Cummins Inc. announced on February 22, 2022, that it would acquire Meritor, Inc. According to the SEC, the scheme involved Fan “Jocelyn” Yang, a former accountant in Cummins’ corporate development group, who learned about the confidential deal during her employment and passed the information to her husband, Jing Tian, a former Cummins engineer. According to the complaint, Tian shared material nonpublic information (“MNPI”) about the impending acquisition with a close friend, allegedly with Yang’s knowledge. Tian’s friend allegedly shared the MNPI with his wife, Zijun Zhang of Chengdu, China, who bought Meritor securities and then passed the tip to her friend Shuchen Zhu of Chantilly, Virginia. Zhu allegedly traded on the information and then shared it with two friends, Chong Zhang of Bellevue, Washington, and Hanxiong Bo of North Hollywood, California, both of whom allegedly bought Meritor stock before the acquisition was publicly announced. According to the SEC, the four downstream traders collectively generated more than $500,000 in illegal profits. The SEC’s charges were filed just weeks after federal prosecutors in the District of Columbia filed criminal charges against Yang and Tian for their roles in the scheme. They are currently scheduled to be sentenced on January 15, 2027.
The SEC charged all six defendants with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. All six defendants consented to final judgments, which the court approved on October 1, 2026. The judgments against Yang and Tian permanently enjoin them from violating the antifraud provisions of the federal securities laws and order them to pay civil penalties in amounts the court will determine later. The other four defendants consented to similar judgments without admitting or denying the allegations, and each was ordered to pay monetary relief. Zijun Zhang was ordered to pay $143,034 in disgorgement, $12,882 in prejudgment interest, and a $143,034 civil penalty. Zhu was ordered to pay $172,366 in disgorgement and a $119,191 civil penalty, and was also barred from associating with brokers, dealers, or investment advisers. Chong Zhang was ordered to pay $146,253 in disgorgement and a $48,751 civil penalty, and Bo was ordered to pay $38,955 in disgorgement, $3,508 in prejudgment interest, and a $38,955 civil penalty.
SEC Litigation Release | SEC Complaint