The US enforcement agency has filed a complaint in Manhattan federal court against Nguyen for frequently trading in the securities of Abaxis, based on material nonpublic information about the firm’ quarterly earnings including revenues, gross profit margins and earnings per share.
Based on the information obtained from a close relative working with Abaxis, Nguyen had traded for selfish gains ahead of the firm’s quarterly earnings and accumulated $145,000 in illegitimate trading profits from 2006 through 2009, SEC claims.
Additionally, Nguyen also passed on the same secret data to hedge fund clients of Insight Research, who traded Abaxis securities based on the inside information and accumulated over $7.2m in unlawful gains for their hedge funds.
SEC’s New York Regional Office and deputy chief of the Market Abuse Unit Sanjay Wadhwa said, Nguyen claimed expertise in researching and analysing technology companies, but his special edge was his willingness to break the law.
"Like many other so-called ‘experts’ who trafficked in inside information, Nguyen now finds himself the subject of an enforcement action," Wadhwa added.
The SEC’s complaint slaps Nguyen with violating anti-fraud provisions of the US securities laws and has sought a final judgement ordering him to disgorge his ill-gotten gains, with interest, and pay financial penalties, and permanently barring him from future violations.
