Manager Tipped Off Relative, Says SEC

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.