Two N.Y. Men Accused of Trading on Inside Information From S&P Dow Jones Indices -- Update
September 21 2020 - 8:55PM
Dow Jones News
By Maria Armental
Two New York men are accused of making more than $900,000 in an
insider-trading scheme, using confidential information on publicly
traded companies from the S&P Dow Jones Indices, the company
that manages the S&P 500 benchmark and other indexes.
Yinghang "James" Yang, a senior index manager, and his friend,
Yuanbiao Chen, a manager at a sushi restaurant, were accused of
running the scheme for several months last year, according to
documents filed in Brooklyn federal court. Mr. Yang was charged
with securities fraud and has been arrested.
The two Queens men stopped in October 2019 after Mr. Chen's
brokerage firm asked some questions about his occupation and
sources of money, according to a complaint filed by the Securities
and Exchange Commission against the two men.
Though the documents don't refer to Mr. Yang's company by name,
they refer to his LinkedIn profile, where he identifies himself as
a senior index manager at S&P Dow Jones Indices and member of
the index committee.
S&P said Mr. Yang has been suspended, and said it was
cooperating with the authorities.
"The allegations describe behavior that is contrary to our
Company's code of conduct and deeply held ethical values," said
April Kabahar, a spokeswoman for the company.
Messrs. Yang and Chen couldn't be immediately reached for
comment.
The authorities accused the men of trading on information about
index changes before the information was released to the
public.
For example, the authorities accuse the men of trading on
T-Mobile US Inc. on July 9, 2019 -- just hours before S&P said
that T-Mobile would join the S&P 500.
Similarly, on Sept. 26, 2019 -- hours before Las Vegas Sands
Corp.'s being added to the S&P 500 was publicly announced --
the two men traded on the company at a profit of more than
$300,000, according to the documents.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
September 21, 2020 20:40 ET (00:40 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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