A Massachusetts man has been arrested on federal charges of insider trading after he allegedly used information obtained from his wife — and then did several internet searches researching how to get away with it.
According to the Associated Press, Fei Yan, a research scientist at the Massachusetts Institute of Technology and 31-year-old Chinese citizen, allegedly earned roughly $120,000 last year from two corporate mergers.
CNBC reports that Yan’s wife worked as an associate at the international firm Linklaters, which is based in London. Linklaters was working on acquisition deals involving the two companies Yan profited from, though his wife was not charged with any crimes Wednesday. Her firm, however, told CNBC that it has suspended her and is cooperating with the investigation.
In order to cover up his alleged crimes, authorities say Yan made trades under an account with his mother’s name, according to USA Today.
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But what has caught people’s attention is how authorities say Yan formulated his plan to get away with the crime: internet searches that, in retrospect, make his intent to cheat and steal obvious.
In a court complaint, prosecutors said Yan used Google to search such phrases as “how sec detect unusual trade” and “insider trading with international account.” He also allegedly read an article titled “Want to Commit Insider Trading? Here's How Not to Do It,” according to U.S. Attorney Joon Kim.
According to the AP, Yan has appeared in Boston court once and been released on $500,000 bail. MIT said in a statement to Reuters that he was a post-doctoral assistant in the Research Laboratory of Electronics.