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Insider Trader Arrested After He Googled 'Insider Trading,' Authorities Allege
Spy Handler writes: Fei Yan, a research scientist at the Massachusetts Institute of Technology and 31-year-old Chinese citizen, was arrested by federal authorities on Wednesday on insider trading charges. Mr. Yan used Google to search for phrases such as "how sec detect unusual trade" and "insider trading with international account." He also allegedly read an article titled "Want to Commit Insider Trading? Here's How Not to Do It," according to the U.S. attorney prosecuting the case. Further reading: Associated Press, CNBC, USA Today
Fuck. I just got arrested for clicking on this story.
He did trades on two different companies that were acquired. And presumably that's the only trades that account has done. And both were immediately very profitable. These are then flag as suspicious by SEC data analysis.
The only connection they can find between the two is that the same law firm handled the acquisitions. They then find that the account is owned by a family member of someone at the law firm. They now have probably cause to issue warrants and get the search results?
Ie. the search results are what are flagged him, not his wife, but the fact that insider trading was going on was discovered long before the search results.
My impression of how it went anyway.
Data analysis came up that investments made by some lady who lives in China were weird. Checking the phone calls to the brokerage company found they were coming from his phone. From there they found them being mother and son and then he was married to a lawyer involved in the legal work. Then they subpoenaed his searches from yahoo and google.
Yeah, I also hate people who don't believe the exact things I do. They always challenge my worldview by bringing their "alternative facts" into the discussion. I'm smart. If I was wrong, I'd already know it.
If so then clearly you have nothing to worry about.