Manager Tipped Off Relative, Says SEC | January 31, 2011 Issue - Vol. 89 Issue 5 | Chemical & Engineering News
Volume 89 Issue 5 | p. 28 | Concentrates
Issue Date: January 31, 2011

Manager Tipped Off Relative, Says SEC

Department: Business
Keywords: Insider trading, illegal profits, drugs

The U.S. Securities & Exchange Commission has obtained a court order freezing bank and brokerage accounts allegedly containing more than $800,000 in illegal profits that were obtained when a Seattle Genetics manager tipped off a relative about positive results in a cancer drug trial. In a complaint filed in a U.S. district court, SEC says Zizhong Fan, a Seattle Genetics manager, told a relative, Zishen Fan, about a positive clinical trial of brentuximab vedotin, a treatment for Hodgkin’s lymphoma, before the news was made public. SEC is seeking disgorgement of the illegal profits and penalties from Zishen, Zizhong, and a third relative in China whose account was used to make illegal trades, SEC says.

 
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