![Chinese fintech exec stole insider info to trade tech stocks: SEC Chinese fintech exec stole insider info to trade tech stocks: SEC](https://i0.wp.com/image.cnbcfm.com/api/v1/image/106991950-1640037801253vmware-OB-Photo-211214-CC-PRESS-4.jpg?fit=%2C&ssl=1)
VMware listed on the New York Stock Exchange, December 14, 2021.
Source: NYSE
The head of compliance at a Chinese payment processor is charged He was indicted by the SEC and federal prosecutors in New York for violating insider trading laws after sneaking into his girlfriend’s computer to view meetings between investment bankers and companies.
Steven Teixeira, a former chief compliance officer for China Lianlian Global’s U.S. unit, pleaded guilty to the federal charges under a cooperation agreement. The SEC said Thursday that the agency’s charges are still pending.
Teixeira allegedly obtained inside information, including prior knowledge of Broadcom Announced $65 billion acquisition virtual machine Start in 2022 and share with colleagues for profit. The SEC said Teixeira obtained the information from the Outlook calendar and files of his girlfriend, who worked as an administrative assistant at an unnamed investment bank in New York.
The non-public information included term sheet data and deal plans for a number of tech companies, including the VMware deal and Thoma Bravo’s planned acquisition of Proofpoint, which allegedly netted Teixeira more than $730,000 in profits.
Teixeira’s girlfriend, who was not named in the complaint, asked him “to check her work email when she was away during the week and to alert her if she received an email that required her attention.”
Proofpoint was taken private in 2021 in a $12.3 billion deal by private equity firm Thoma Bravo, which Teixeira allegedly made at a time when it was trading using insider information. Teixeira purchased options on Proofpoint stock on April 22, 2021, a few days before the announcement. Broadcom’s acquisition of VMware has been delayed by regulators.
Teixeira allegedly shared the inside information with his colleague Jordan Meadow, who has also been charged with violating federal insider trading laws.
Meadow used the information in his work as an investment advisor to guide clients to lucrative opportunities and earn “hundreds of thousands” of dollars in commissions, the SEC said.
meadow also faces federal chargesIt was unveiled Thursday in Southern New York.
The SEC’s Scott Thompson said: “Our complaint alleges a flagrant breach of trust by Teixeira, who stole information from his girlfriend’s laptop to make quick bucks, and industry veterans Meadow is eager to use this information to enrich himself.” Philadelphia Deputy Regional Director, explain in the press release.
watch: Senators Kennedy and Van Hollen introduce bill to block insider trading by foreign executives
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