A Manhattan-based investment analyst, Jianqing Li, also known as “JQ,” has been charged with two counts of securities fraud for allegedly making over $350,000 in illicit profits through insider trading. The charges were unsealed today by U.S. Attorney Jay Clayton for the Southern District of New York and FBI Assistant Director in Charge James C. Barnacle, Jr. Li was presented before Magistrate Judge Gary Stein, with the case assigned to U.S. District Judge Lorna G. Schofield.
Li, an analyst at an asset manager specializing in biomedical and healthcare investments, is accused of misappropriating material, nonpublic information from his employer. He allegedly used this confidential data to trade stocks and options for personal gain, violating his duties and employer's insider trading policies. This included purchasing securities when positive announcements were expected and selling short when negative impacts were anticipated, then unwinding positions for profit.
U.S. Attorney Jay Clayton said, “Jianqing Li allegedly turned confidential information into more than $350,000 in illegal trading profits. Insider trading is unfair and it’s illegal. It harms our markets and our investors.” FBI Assistant Director in Charge James C. Barnacle, Jr. added, “Jianqing Li’s alleged exploitation of sensitive trading information betrayed his employer and established an unfair financial advantage over the unknowing public.”
To conceal his activities, Li reportedly failed to seek preclearance for trades, did not disclose his trading or profits, and falsely certified compliance with company ethics policies annually. Li, 40, of New York, New York, faces a maximum sentence of 20 years for one count of securities fraud and 25 years for the other. The charges are accusations, and he is presumed innocent until proven guilty.