Authors: Kelly Knaub
(NEW YORK) -- Six Chinese citizens have had their assets frozen after a complaint filed by the Securities and Exchange Commission charged them with insider trading, the New York Times' Dealbook reports.
The SEC's complaint, filed last Wednesday in a U.S. District Court in Chicago, accuses the six defendants of gaining more than $9 million by trading in the shares of Zhongpin Inc., a Chinese pork processing company, ahead of the announcement of a management-led buyout in March. Prestige Trade Investments, a company formed by Yang and based in the British Virgin Islands, was also named in the complaint.
The SEC had requested an emergency asset freeze order to prevent the defendants from moving millions of dollars in illicit profits off-shore. The investigation into the unlawful trades is ongoing.
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