Insider Trading and Options Trading Scheme of VistaPrint Stock Results in Federal Indictment


“In the final two quarters of 2014, Chen profited more than $800,000 by correctly predicting the direction of the change in the company’s share price following the company’s earnings announcements,” the FBI said in a news release.

Chen enjoyed the windfall money briefly. Allegedly, he used a portion of the insider trading scheme proceeds to purchase a condominium in Stoneham, MA. Mr. Chen is facing two charges; securities fraud and making a materially false statement to Federal Agents.

While the U.S. Department of Justice and regional U.S. Attorneys’ offices carry out criminal prosecutions of individuals who violate the federal securities laws, potential insider trading is often initially uncovered by the Financial Industry Regulatory Authority (FINRA). The FINRA Whistleblower hotline that accepts tips and complaints via telephone (1-866-96-FINRA or 1-866-963-4672) or email ([email protected]).