A former Goldman Sachs compliance employee settled his case with the Securities and Exchange Commission to resolve insider trading charges filed against him last year. Judge Valerie Caproni of the U.S. District Court for the Southern District of New York last week entered a final judgment against defendant Yue Han, who worked as an associate in Goldman Sachs’ compliance department.
As Compliance Week previously reported, the SEC brought insider trading charges against Han in November 2015 over allegations that he traded on confidential information contained in e-mails sent and received by Goldman Sachs’ employees who advised investment banking clients on impending merger and acquisition transactions. According to the SEC’s complaint, Han gained access to the e-mails as part of his work developing surveillance software to monitor other employees for potential misconduct, including insider trading, and used this access to generate over $460,000 in illicit gains.
The final judgment, which was entered with Han’s consent, permanently enjoins Han from violating Sections 10(b) and 14(e) of the Securities Exchange Act and Rules 10b-5 and 14e-3. In addition, the final judgment orders Han to make disgorgement of his alleged insider trading profits of $468,131 by relinquishing title to certain financial accounts that were frozen pursuant to a court order that the SEC secured upon filing its case.
Han has also consented to the entry of an SEC Administrative Proceeding Order that will bar him from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, or from participating in any offering of penny stock. Han consented to the entry of the district court judgment and the anticipated industry bar without admitting or denying the SEC’s allegations.
Wei Han, a relief defendant whose brokerage account Yue Han sometimes used to perpetrate the alleged insider trading scheme, consented to the entry of a final judgment whereby he also relinquished any claims to the now frozen financial accounts.