With the help of the
Michael Tom, David Tom, Shengnan Wang and Hai Liu were the individuals specifically involved with insider trading. Wang and Liu invested $60,000 into a hedge fund that was being run by Tom.
The Massachusetts U.S. Attorney's Office also charged Wang and Liu for insider trading.
Wang communicated non-public information having to do with the acquisition to Liu and Tom. Tom then bought call options in Charter One for a personal account and for the hedge fund. When Citizens Financial Group announced the plans for the acquisition; Charter One's share prices grew by 22% to $43.86 a share in just one day.
Michael Tom made a total of $744,000 in profits as a result of the insider trading.
In addition, both Tom and Liu have tipped off their brothers, who also made profits. David Tom made $39,000, and Zheng Liu made $3,000. Zheng Liu has not been charged.