Department of Justice and SEC commit to investigating insider trading in 2025

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By Jeffrey A. Newman

Insider trading of publicly traded company securities by individuals with access to confidential non public information is considered by insiders as a very common practice particuarly by hedge funds. In May 2025, the Department of justice announced new policies and investigative priorities for white collar crime espexcially insider trading as areas of focus. The high impact areas included “fruad that victimizes U.S. investors, individuals, and markets including investment fraud and Ponzi Schemes.

The SEC remains active in bringing insider trading cases. In the first quarter of 2025 alone, the SEC filed six stand-alone insider trading cases, in addition to actions involving other types of fraud and misconduct.

Although the SEC typically does not publicize its enforcement statistics until after the government’s fiscal year ends in September, the SEC discloses each new case on its website. A review of those cases shows that, at a high level, the SEC brought the following actions from January 21, 2025, the day Commissioner Uyeda was named Acting Chairman, through the end of the first quarter on March 31, 2025.

  • The SEC filed 26 stand-alone enforcement actions, consisting of:
    • 18 actions in federal district courts; and
    • Eight administrative proceedings.
  • The subject matter of those actions included:
    • 19 cases alleging fraudulent conduct (other than insider trading);
    • Six insider trading cases;
    • Six cases involving investment advisers;
    • Five cases with parallel criminal proceedings; and
    • One case alleging violations of Regulation BI by a broker-dealer and several registered representatives.
  • The SEC also brought 19 follow-on actions, imposing various suspensions or bars based on the entry of an order in a prior civil or criminal proceeding.

In March 2025, the SEC charged individuals in an international insider trading scheme that generated over $17.5 million in illegal profits, with parallel criminal indictments unsealed by the U.S. Attorney’s Office. On March 4, 2025, the SEC charged German national Eamma Safi and Singaporean national Zhi Ge (a/k/a Josh Ge), with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder for their alleged involvement in an international insider trading scheme (hatched over lunch at a Parisian restaurant) that generated over $17.5 million in illegal profits. The complaint alleged that from 2017 to 2024, Safi obtained material nonpublic information from corporate insiders and investment bankers regarding planned corporate transactions, acquisition offers, and earnings announcements for U.S. public companies and foreign public companies trading on foreign exchanges with American depositary receipts (ADRs).

According to the SEC, Safi tipped Ge and another individual referred to as “Trader A” using coded and disappearing messages on Telegram, and all three purchased stock, call options, ADRs, and/or contracts for difference, with Safi also receiving kickbacks from Trader A. The SEC’s complaint also alleged that Safi leaked material nonpublic information to journalists and news outlets to allow the participants to trade on the market’s reaction rather than waiting for corporate press releases. The complaint seeks injunctions, disgorgement, prejudgment interest, and civil penalties. Additionally, the U.S. Attorney’s Office for the District of Massachusetts unsealed criminal indictments in a parallel action against Safi and Ge on March 4, 2025.

In 2023, the SEC announced charges against 13 defendants in four separate insider trading schemes, with parallel criminal charges filed by the DOJ, demonstrating ongoing collaboration between the agencies.  the SEC announced charges against 13 defendants in four separate insider trading schemes:

The SEC alleges that these defendants, which include corporate executives and insiders, a police chief, and a SPAC board member, made more than $40 million in ill-gotten gains, collectively, from their schemes.

Insider trading may be the most common form of fraud which affords hedge funds and others a singificantly unfair advantage in stock purchases based on their insider information about what will happen to affect a company’s stock price. If you are aware of and have evidence of major insider trading contact Attorney Jeffrey Newman.  Jeffrey Newman is a whistleblower lawyer representing whistleblowers reporting insider trading, doctors who become whistleblowers and Medicare and Medicaid fraud. He also represents whistleblowers in IRS tax evasion cases, SEC violations and tariff fraud cases. Jeff frequently writes on events affecting world social developments including AI. He can be reached at Jeff@JeffNewmanLaw.com or at 978-880-4758