INDIANAPOLIS— Two Indianapolis residents have been indicted in Washington D.C. federal court after they reportedly used insider information to profit in a $3.7 billion corporate acquisition.
According to a news release from the United States Attorney’s Office for the District of Columbia, 39-year-old Fan Yang and 37-year-old Jing Tian were both arrested and charged with two counts of conspiracy to commit securities fraud. Yang was a finance executive at an Indiana manufacturing company, a company where Tian, Yang’s husband, also worked.
The release states that in 2021, the company held discussions about acquiring a Michigan-based firm that built components for vehicles. In February 2022, the company announced an agreement to acquire the firm for $3.7 billion. Before markets opened, the firm’s stock price rose 44% from the prior day’s closing price due to the sale.
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The release alleges that Yang began to collect non-public information about the deal in October 2021. Following this, Yang allegedly had discussions about conducting security purchases of the target company in November 2021. The conversations grew to include at least five others…