SEC v. Zhuobin Hong, et al. (insider trading, 2020)

Settled

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The Central District of California entered a final consent judgment against Zhuobin Hong on March 9, 2022, enjoining him from insider trading violations and ordering a $2.3 million civil penalty. The outcome for his wife Caixia Jiang and the relief defendants was not checked.

The record

What was ordered

Civil penalty

$2.3m

Disgorgement

—

Prejudgment interest

—

Total relief

$2.3m

Alleged gain

$8.5m

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 the complaint on May 5, 2020 as litigation release 24810; it was filed on May 4 in the Central District of California.

The complaint alleges the couple obtained confidential acquisition information, directly or indirectly, from a friend and neighbour whose company competed to buy Sagent, and traded through accounts in relatives' names in China, sometimes making up over 20% of daily volume. It charges violations of Sections 10(b) and 14(e) and Rules 10b-5 and 14e-3.

The original release records no outcome. The earlier record named one defendant, 'Zhuobin Hong, et al.'.

Outcome. The final judgment as to Hong, dated March 9, 2022 and entered on his consent without admission or denial, enjoins him under the antifraud and tender-offer fraud rules and orders a civil penalty of $2.3 million. The judgment contains no disgorgement figure. This is a court document without a narrative release, and the claims against Caixia Jiang and the two relief defendants were not checked.

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. 2020-05-05 Litigation release published
2. 2022-03-09 Final consent judgment entered against Hong

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
• Final judgment as to Zhuobin Hong

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.