MANHATTAN (CN) – The SEC on Tuesday accused Tai Nguyen, the owner of California-based equity research firm Insight Trading, of inside trading from which he made tens of thousands of dollars and his clients made millions.
In a statement announcing its complaint, the SEC claims that “from 2006 through 2009, Nguyen frequently traded in the securities of Abaxis Inc. based on inside information he received from a close relative employed at Abaxis. Nguyen repeatedly traded for himself in advance of the company’s quarterly earnings announcements while in possession of key data in those announcements, reaping tens of thousands of dollars in illicit profits. Nguyen also passed that same information to hedge fund clients of Insight Research, who used the inside information to make millions of dollars in profits from trading Abaxis securities.”
The SEC claims Nguyen made about $145,000 from his inside trading, and that “two hedge fund managers – who collectively were paying Insight Research tens of thousands of dollars each month – traded Abaxis securities based on the inside information that Nguyen provided and reaped more than $7.2 million in illicit gains for their hedge funds.”
The SEC wants Nguyen to disgorge his illicit profits, pay a fine and not do it again.
It claims that Nguyen was one of 23 defendants in enforcement actions against so-called expert networkers.