SEC charges investment banking analyst with insider tradingChristian Fernsby ▼ | August 13, 2019
The Securities and Exchange Commission charged an analyst at a large international investment bank with insider trading based on confidential information that he learned about Siris Capital Group's plans to acquire Electronics for Imaging, Inc. (EFII).
America Electronics for Imaging
Tsai allegedly attempted to hide his illegal activity by conducting his trading in a brokerage account that he concealed from his employer, and by circumventing the bank's policies that require employees to pre-clear securities trades.
"As alleged in our complaint, Tsai reaped nearly $100,000 in illicit profits by misusing highly confidential information entrusted to him," said Joseph G. Sansone, Chief of the SEC Enforcement Division's Market Abuse Unit. "Using our enhanced analysis and detection capabilities, the SEC was able to act swiftly, exposing Tsai's misconduct just months after his illegal trading took place."
In a parallel action, the U.S. Attorney's Office for the Southern District of New York today announced criminal charges against Tsai.
The SEC's complaint charges Tsai with violating the antifraud provisions of the federal securities laws and seeks disgorgement of ill-gotten gains plus interest, penalties, and injunctive relief. ■