(Legal Newsline) – The Securities and Exchange Commission (SEC) announced Feb.
10 that it obtained an emergency court order freezing brokerage accounts amassed
by Shaohua (Michael) Yin in the wake of Comcast Corp.’s acquisition of
DreamWorks Animation SKG Inc. after allegations of insider trading.
to the SEC, Yin compiled $56 million in DreamWorks stock, placing the money in
various U.S. brokerage accounts belonging to Chinese nationals. After Comcast
acquired DreamWorks, DreamWorks’ stock price rose 47.3 percent.
the defendant’s alleged attempts to hide his control over these accounts, the
SEC’s data analytic investigative tools enabled us to determine who was
behind the suspicious trading,” said Michele Wein Layne, director of the SEC's
Los Angeles Regional Office. “Our action today shows that the SEC will
not hesitate to freeze the assets of foreign traders when they use our markets
to conduct illegal activity.”
seeks a permanent injunction, the return of all profits that were allegedly
gained illegally, civil monetary penalties and additional relief.
the case for the SEC are Gary Leung and Amy Longo. Jasmine Starr, Sarah
Mitchell and Finola H. Manvelian of the Los Angeles Regional Office, with
assistance from John Rymas of the Enforcement Division’s Market Abuse Unit, first looked into the issue.