Insider trading: SEC v. Fan, Case No. C11-0096 (W.D. WA. Filed Jan. 18, 2011) is an action against Defendants Zizhong (James) Fan and Zishen (Brandon) Fan and relief defendant Junhua Fan, all relatives (here). James was employed at biotech company Seattle Genetics as the manager of clinical programming. Brandon resides in Chino Hills, California while Junhua lives in Beijing, China. James and his team were involved in clinical trials for a drug known as SGN-35, a product to treat Hodgkin’s lymphoma. His direct reports had access to data about the trials in July and August 2010. Between August 24 and September 24, 2010 Brandon is alleged to have purchased over 2,750 Seattle Genetics options at a cost of $360,000. The contracts were acquired through Junhua’s account. During this same period James repeatedly attended meetings involving the key trial on the drug and the late September deadline for disclosing those results to the public. On September 27 the company issued a press release and conducted a webcast to disclose the results The price for company shares increased about 18%. Brandon liquidated the options at a profit of $803,000 over the next month. Subsequently the SEC staff contacted both defendants on January 13, 2011. Over the next few days there were repeated efforts to transfer the money first to a domestic account and later to a bank in China. James also announced he was leaving for China. The Commission filed an action alleging violations of Exchange Act Section 10(b) and obtained a temporary freeze order. The case is in litigation.