(Bloomberg) — The FBI had to move fast when agents learned that two men who were the focus on an insider trading investigation were about to get on a flight to Hong Kong. Before they could board the early morning June 28 flight, federal agents arrested Justin Chen, 31, and Jun Zhen, 29. Prosecutors say they pocketed at least $1 million by taking information they learned from their job at a private company that formats materials before they are submitted to the Securities and Exchange Commission’s Edgar filing system. At a pair of court hearings, prosecutors said that they were aware of at least four companies where the two men allegedly made trades based on non-public information. But officials were investigating whether Chen and Zhen traded in at least six more companies when they were arrested, hours before getting on the Cathay Pacific flight to Hong Kong. “We probably wouldn’t have arrested the defendants at this point as the investigation is ongoing,” Nicholas Axelrod, an assistant US attorney, said at one of the hearings. “If not for that travel.” The arrests spotlight ongoing problems with how confidential information can be obtained by insiders before it’s publicly released on the Edgar database, the SEC’s online portal for more than 30 years. In 2021, the SEC brought enforcement cases against several people who they accused of hacking into third-party companies that dealt with Edgar system. Chen was an Edgar assistant manager and Zhen was a typeset assistant manager at New York-based EdgarAgents.com. Companies like EdgarAgents help prepare company filings before they are sent to the Edgar system and distributed to the public. Between March and June 2025, prosecutors say the two obtained material, nonpublic information ahead of announcements like mergers “that resulted in significant increases in the share price of each company’s stock.” Brazen Scheme “This was an incredibly brazen scheme,”Axelrod told a federal magistrate in Brooklyn, New York, on Monday. “They traded on the information and they traded aggressively.” Lawyers for both men declined to comment on the charges. Neither man has entered a plea at this point in the proceedings. Chen, who prosecutors say made $100,000 a year, had worked at the company since 2020 and had been working at firms that handled Edgar data since 2012, according to his LinkedIn profile. His sister also worked at the company. Prosecutors say that the two men had accessed proposed filings on at least four companies before the information was public; Ondas Holdings Inc., Purple Innovation Inc., Signing Day Sports Inc. and SigmaTron International Inc. In one example, prosecutors say Chen and Zhen both bought tens of thousands of shares of Ondas Holdings just before the company released an SEC 8-K form disclosing that it had entered into a strategic partnership with Palantir, a multibillion-provider of artificial intelligence service. They made about $36,749 in t in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. 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Associates of Edgar are facing accusations related to trading based on information in the context of an expanding investigation.
