Two Brooklyn residents on June 27 were charged with participating in an insider trading scheme that exploited early access to company filings, according to federal prosecutors.
Justin Chen and Jun Zhen, both employees at a Manhattan-based financial compliance firm known as Edgar Filer 1, allegedly used confidential information to trade shares in companies just before major announcements that sent stock prices soaring, according to U.S. Attorney’s Office for the Eastern District of New York.
The firm, which specializes in preparing financial filings for companies, had access to sensitive corporate news before it was made public through the SEC’s EDGAR system. Employees like Chen and Zhen were responsible for converting and typesetting these filings before submission…