Lexington Man Found Guilty Of Insider Trading

LEXINGTON, MA — Lexington resident Charlie Chen was found guilty in an illegal insider trading scheme dating back from 2013 to 2014. Chen made over $800,000 in illicit trading profits, according to the U.S. Securities and Exchange Commission.

Chen was charged in April 2018 and accused of insider trading ahead of five different earnings announcements of the Lexington-based company Vistaprint. Chen was close friends with a Vistaprint insider and her husband, and received highly confidential nonpublic information. He used the information to place trades in advance of five different announcements of Vistaprint's financial results from April 2013 through July 2014, according to the SEC.

On some occasions, Chen placed extremely aggressive bets such as wagering much of his retirement account on risky Vistaprint options before the company's announcement of disappointing earnings results in April 2014. According to evidence presented at the trial, Chen made over $800,000 in illicit trading profits.

The evidence at trial also showed that, when he was questioned by the FBI in 2016, Chen claimed that he didn't know anyone who worked at Vistaprint and denied having a close relationship with the Vistaprint insider and her husband with whom he and his family had vacationed.

The jury found Chen liable on all counts. The SEC is seeking disgorgement of Chen's insider trading profits and may seek civil penalties of up to three times the amount of Chen's profits.