The Securities and Exchange Commission (SEC) has brought charges against Eamma Safi and Zhi Ge a/k/a Josh Ge for an insider trading scheme.
The SEC complaint was filed with the Massachusetts District Court on March 4, 2025.
The complaint alleges that from in or about 2017 through in or about 2024, Safi and Ge willfully participated in an international insider trading scheme that netted them millions in illicit profits from trading in advance of market-moving announcements. The scheme (the “Tipping Scheme”) involved tips that originated from persons known to Safi or his close associates.
In the Tipping Scheme, Safi directly or indirectly obtained from insiders (including one or more sources at publicly traded companies) material nonpublic information about impending corporate transactions or other confidential information that could move the market, such as earnings announcements.
Safi then tipped Ge as well as another individual (“Trader A”) recruited by Ge, and all three traded profitably on the tips of inside information.
Safi and/or Ge demanded and received kickbacks of trading profits from Trader A in exchange for such information.
Using the illegal tips, Safi and Ge – along with Trader A – generated millions in illicit profits trading the securities of numerous companies, both through their individual trading accounts and through brokerage accounts in the names of other people and entities that were controlled by Safi, Ge, and/or Trader A.
Safi and Ge knew or were reckless in not knowing they were trading while aware of and on the basis of material nonpublic information obtained from insiders at public companies and/or other sources owing a similar duty to maintain the confidentiality of such information.
For example, in or about November 2017, Safi directly or indirectly tipped material nonpublic information to Ge and Trader A in advance of the December 11, 2017 announcement by Atos that it had made an all-cash offer to acquire Gemalto, N.V.
Safi also directly or indirectly tipped material nonpublic information to Trader A in advance of the July 22, 2018 announcement that Atos had agreed to acquire Syntel, Inc.
In or about December 2018, Atos began discussions with Worldline to distribute approximately half of Atos’s 50% ownership stake in Worldline to Atos shareholders through a share distribution.
On or about December 12, 2018, Safi began buying Atos call options, and Trader A began buying U.S.-traded Atos ADRs in an account in his mother’s name.
In or about October 2019, Safi directly or indirectly tipped material nonpublic information to Trader A in advance of the February 3, 2020 announcement that Worldline had agreed to acquire French rival Ingenico Group SA
The SEC accuses Safi and Ge of violations of Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5].
The Commission seeks permanent injunctions against the defendants, to enjoin them from engaging in the transactions, acts, practices, and courses of business alleged in the Complaint; disgorgement of profits realized from the unlawful trading, along with prejudgment interest; and civil monetary penalties pursuant to Section 21A of the Exchange Act [15 U.S.C. § 78u-1].
