On June 5, 2026, the Securities and Exchange Commission charged a New York investment analyst with insider trading in connection with the purchase of securities of at least twelve healthcare companies from February 2024 to October 2025.
According to the SEC’s complaint, JianQing Li worked for an unnamed NY-based investment advisor that specializes in biomedical and healthcare investments. According to the complaint, Li’s employer routinely engaged in a process known as “wall-crossing” where investment banks ask advisors if they will agree to receive confidential information about clients’ upcoming securities offerings and clinical drug data in exchange for keeping the information secret while deciding whether to participate in the offering. According to the SEC, after Li’s employer would agree to be wall-crossed and receive material nonpublic information, Li traded in clients’ securities based on the MNPI received and took deliberate steps to hide the trading from his employer. He allegedly purchased securities when the news was favorable and would sell short when it was not, in violation of a duty of trust and confidence owed to his employer. When clients made material announcements and stock prices moved sharply, Li was allegedly able to close his position and pocket the profits. The SEC accuses Li of engaging in this process on at least twelve occasions and reportedly generating a total of approximately $327,883 in illicit profits.
In the complaint, which was filed in the Southern District of New York, the SEC charges Li with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC is also seeking a permanent injunction from future violations of federal securities laws as well as the payment of disgorgement, prejudgment interest, civil penalties, and a permanent bar from acting or associating with an investment advisor.
On the same day, the U.S. Attorney’s Office for the Southern District of New York announced parallel criminal charges against Li in connection with his securities trades. Federal prosecutors also unsealed an indictment charging Li with two counts of securities fraud for his role in the insider trading scheme.
SEC Litigation Release | SEC Complaint | USAO SDNY Press Release | Indictment