SEC v. Fan “Jocelyn” Yang; Jing Tian; Zijun Zhang; Shuchen Zhu; Chong Zhang; and Hanxiong Bo — U.S. Securities and Exchange Commission Litigation Release No. 26650, dated September 28, 2026.
The SEC charged six individuals, including a former Cummins accountant and her husband, with insider trading. The accountant allegedly tipped her husband about Cummins's planned acquisition of Meritor, Inc., and the information was passed along to others who traded Meritor stock, resulting in over $500,000 in illicit profits. Several defendants have consented to judgments enjoining them from future violations and ordering monetary penalties.
Imagine someone at a company learns a big secret: their company is buying another company. This is super valuable info! They tell their spouse, who tells a friend, who tells their spouse, and so on. Each person who gets the secret information buys stock in the company being bought before the public announcement. When the news breaks, the stock price jumps, and they sell their shares for a profit. The SEC caught this group and is making them pay back their illegal profits and face penalties.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
On September 28, 2026, the SEC filed insider trading charges against Fan Yang, Jing Tian, Zijun Zhang, Shuchen Zhu, Chong Zhang, and Hanxiong Bo. Yang, a former Cummins accountant, allegedly tipped her husband Tian about Cummins's agreement to acquire Meritor, Inc. Tian allegedly passed the information to others who then traded Meritor securities ahead of the announcement, collectively profiting over $500,000. Yang and Tian consented to judgments enjoining them from future violations and agreed to pay civil penalties. Zijun Zhang, Shuchen Zhu, Chong Zhang, and Hanxiong Bo also consented to judgments enjoining them from violations of Section 10(b) of the Exchange Act and Rule 10b-5. The final judgment against Zijun Zhang orders disgorgement of $143,034 plus prejudgment interest of $12,882 and a civil penalty of $143,034. The final judgment against Shuchen Zhu orders disgorgement of $172,366, a civil penalty of $119,191, and an injunction related to broker-dealer activities. The final judgment against Chong Zhang orders disgorgement of $146,253 and a civil penalty of $48,751. The final judgment against Hanxiong Bo orders disgorgement of $38,955 plus prejudgment interest of $3,508 and a civil penalty of $38,955. The U.S. Attorney’s Office for the District of Columbia previously filed criminal charges against Yang and Tian.