The Securities and Exchange Commission (SEC) filed insider trading charges against Andre Wong for illegally trading in NeoPhotonics Corporation’s securities before the announcement that his then-employer, Lumentum Holdings Inc, had agreed to acquire NeoPhotonics.
According to the SEC’s complaint, filed in federal district court in the Southern District of New York, Wong learned material nonpublic information about Lumentum’s plans to acquire NeoPhotonics from a colleague at Lumentum.
Based on this information, Wong purchased 10,000 shares of NeoPhotonics prior to Lumentum’s acquisition announcement and made approximately $62,000 in illegal profits.
The case originated with the SEC’s Market Abuse Unit’s Center for Analysis and Detection, which uses data analysis tools to detect suspicious trading patterns.
The SEC’s complaint accuses Wong of violating the anti-fraud provisions of Section 10(b) of the Securities Exchange Act of 1934 [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5] and seeks permanent injunctive relief, dismissal with prejudice, and civil penalties.