Litigation Releases (JianQing Li)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26561 / June 5, 2026

Securities and Exchange Commission v. JianQing Li, No. 1:26-cv-04778 (S.D.N.Y. filed June 5, 2026)

SEC Charges Former New York Investment Analyst for Alleged Insider Trading

On June 5, 2026, the Securities and Exchange Commission charged JianQing Li, a former investment analyst at a New York-based investment adviser, with allegedly insider trading in the securities of at least twelve healthcare companies from February 2024 through October 2025.

According to the SEC's complaint, Li had access, through his employment at a registered investment adviser focused on the healthcare sector, to confidential information about his employer's healthcare company clients' upcoming securities offerings and clinical drug data, such as the terms of upcoming private placements and the results of clinical drug trials, that his employer had agreed to keep secret. The complaint alleges that once Li's employer was "wall-crossed" and obtained material non-public information about its healthcare company clients, Li misappropriated that confidential information and, before the information became public, traded in the healthcare companies' securities for his own personal benefit. As alleged, Li realized more than $320,000 in illicit profits.

The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, charges Li with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks a permanent injunction, disgorgement with prejudgment interest, civil penalties, and a conduct-based injunction prohibiting Li from acting as or associating with an investment adviser.

On June 5, 2026, Li was charged in a parallel criminal action brought by the U.S. Attorney's Office for the Southern District of New York.

The SEC's investigation was conducted by Kim Han, Janna Berke, and Melissa Coppola, under the supervision of Mark Sylvester, all with the SEC's New York Regional Office. The litigation is being led by Christopher M. Colorado and Kim Han. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York, the FBI, and the Financial Industry Regulatory Authority.