SEC v. Justin Chen and Jun Zhen (insider trading, 2025)

Judgment entered

✓ Checked against the primary document on October 4, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In August 2025 the SEC charged Justin Chen and Jun Zhen over an alleged insider-trading scheme using clients' filings at an EDGAR filing agent. On September 8, 2026 the court entered a final consent judgment against Chen with $1,828,442 disgorgement and $32,361 interest, deemed satisfied by criminal orders; Zhen was not checked.

The record

What was ordered

Civil penalty

—

Disgorgement

$1.8m

Prejudgment interest

$32.4k

Total relief

$1.9m

Alleged gain

$2m

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced this matter on August 21, 2025 as release LR-26380, filing in the Eastern District of New York on August 18, 2025.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

Outcome (checked on 2026-10-04): the SEC's litigation release of September 9, 2026 reports that the Eastern District of New York entered a final consent judgment against Justin Chen on September 8, 2026. A partial consent judgment of March 16, 2026 had already enjoined him from violating the antifraud and tender-offer fraud rules; the final judgment repeats that injunction and holds him liable for disgorgement of $1,828,442 and prejudgment interest of $32,361. The release says those sums are deemed satisfied by the restitution and forfeiture orders entered in the parallel criminal case, United States v. Chen. It does not report a prison sentence, so none is recorded here. This outcome covers Chen only; the release does not report a result for the other defendant, Jun Zhen, and we did not check his case.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Insider trading — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2025-08-21 Litigation release published
2. 2026-09-08 Court enters final consent judgment against Justin Chen

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release
• SEC litigation release LR-26634

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.