Jun Zhen and Justin Chen, two former employees of an unnamed company that handles public EDGAR filings, recently pleaded guilty to insider trading conspiracy in the Eastern District of New York. Zhen and Chen each pleaded guilty to one count of conspiracy to commit insider trading at plea hearings held on October 21, 2025 and October 29, 2025, respectively. Zhen is currently scheduled to be sentenced on March 4, 2026, while Chen is scheduled to be sentenced on March 11, 2026.
According to the criminal information, Zhen conspired with his co-defendant and colleague, Justin Chen, between March and June 2025, to purchase securities in twelve named companies while in possession of material nonpublic information from 8-K filings and press releases obtained from clients and filed during the course of their employment. According to federal prosecutors, these securities purchases violated a duty of trust and confidence owed to their unnamed employer and its clients. As part of the scheme, the two often purchased securities the day before material announcements and allegedly sold the shares immediately after the announcements. Zhen and Chen reportedly made more than $1 million in collective profits from their participation in the scheme.
On August 21, 2025, the Securities and Exchange Commission filed parallel civil charges against Zhen and Chen for the improper securities trades. The SEC’s complaint charges Zhen and Chen with violating the antifraud provision of Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. The SEC’s case against the defendants continues.
Docket – Minute entry | Criminal Information | Criminal Complaint | SEC Litigation Release – August 2025