U.S. regulators accused two Chinese citizens of insider trading

Reuters News
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Posted: Nov 10, 2015 10:56 AM

NEW YORK (Reuters) - U.S. securities regulators have accused two Chinese citizens at a peer-to-peer lending platform of engaging in insider trading ahead of the announcement that two companies had agreed to be acquired by private equity firms.

In a lawsuit filed in Manhattan federal court that was made public Tuesday, the SEC said Zhichen Zhou, a web administrator at Yooli.com, engaged in "highly suspicious" trading in the stocks of MedAssets Inc and Chindex International Inc.

Both companies later announced private equity takeovers in deals where one of the bidders had been TPG Capital LP, where Yooli.com CEO Yannan Liu, Zhou's cousin, had previously worked, the SEC said.

(Reporting by Nate Raymond in New York; Editing by Chizu Nomiyama)