Litigation Release No. 25122 / June 25, 2021

Securities and Exchange Commission v. Wang, No. 19-cv-12557 (D. Mass. filed Dec. 20, 2019)

The Securities and Exchange Commission announced that on June 9, 2021, the United States District Court for the District of Massachusetts entered a final consent judgment against Songjiang “Sam” Wang, a former biopharmaceutical executive previously charged for engaging in insider trading by exchanging tips about confidential clinical trial results with his close friend, Jason “Schultz” Chan, who worked for a different biopharmaceutical company.

The final judgment permanently enjoined Wang from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and imposed a $50,000 civil penalty and a permanent officer-and-director bar.

Both Wang and Chan were charged with insider trading by the U.S. Attorney’s Office for the District of Massachusetts and were criminally convicted after a jury trial. Wang was sentenced to six months of incarceration, and Chan was sentenced to thirty-six months of incarceration; both were also ordered to pay fines and restitution.

The SEC’s litigation against Wang was conducted by Paul Gizzi and Neil Hendelman of the SEC’s New York Regional Office, Simona Suh of the SEC’s Market Abuse Unit, and Martin Healey of the SEC’s Boston Regional Office. The case was supervised by Market Abuse Unit Chief, Joseph G. Sansone. The SEC appreciates the assistance of the U.S. Attorney’s Office for the District of Massachusetts, the Federal Bureau of Investigation, and the Financial Industry Regulatory Authority.

For additional information, see Litigation Release No. 24697 (Dec. 20, 2019).



In the SEC’s separate action against Chan, the court previously granted the SEC’s motion for summary judgment and entered an order permanently enjoining Chan from future violations of Exchange Act Section 10(b) and Rule 10b-5, requiring him to disgorge $68,699 in profits and pay $13,738 in prejudgment interest, and barring him from acting as an officer or director of a public company for five years. SEC v. Chan, 16-cv-11106 (D. Mass. June 8, 2020)

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