WASHINGTON (Sputnik) — "The SEC alleges that in the weeks leading up to the news of the acquisition, Shaohua (Michael) Yin amassed more than $56 million of DreamWorks stock in the US brokerage accounts of five Chinese nationals, including his elderly parents," the release stated on Friday.
DreamWorks stock price rose 47.3 percent once the acquisition was announced, the release noted.
The complaint also alleges the accounts profited from other suspicious trading in another US-based company and three China-based companies ahead of market-moving news, the release explained.
Judge J. Paul Oetken of the US District Court for the Southern District of the state of New York granted the SEC’s request for an asset freeze of the five brokerage accounts, according to the release.
The SEC said it plans to seek a permanent injunction, return of allegedly ill-gotten profits, civil money penalties and other relief at a February 17 hearing.
The US media corporation Comcast purchased DreamWorks Animation in a $3.8 billion deal announced in April.
