Sung Mo “Jay” Jun is a former engineer for Netflix who is accused by the Securities and Exchange Commission (SEC) of insider trading based on what he knew about the company.
> SEC complaint against Sung Mo Jun, Joon Mo Jun, Junwoo Chon, Ayden Lee and Jae Hyeon Bae
Jun Accused of Earning Over $3 Million In Insider Trading On Netflix. “According to the SEC’s complaint, Sung Mo “Jay” Jun was at the center of a long-running scheme to illegally trade on non-public information concerning the growth in Netflix’s subscriber base, a key metric Netflix reported in its quarterly earnings announcements. The complaint alleges that Sung Mo Jun, while employed at Netflix in 2016 and 2017, repeatedly tipped this information to his brother, Joon Mo Jun, and his close friend, Junwoo Chon, who both used it to trade in advance of multiple Netflix earnings announcements.” [SEC]
Filing: Messaging Service Used To Make Illegal Trades. “In February 2018, Bae allegedly joined a Messaging Channel called “Rage Against the Market,” which was hosted on a popular business communication platform. It included Sung Mo Jun, Joon Jun and Chon. Bae hoped to get information that “would help him make money trading securities,” the complaint says.” [CNBC]
Netflix Gives Employees Access To Sensitive Information. “Sensitive, internal information is disclosed to Netflix employees frequently, and by design. As founder and Co-CEO Reed Hastings explained in his 2020 book, No Rules Rules, the company aims for transparency in order to keep workers motivated. “We are perhaps the only public company that shares financial results internally in the weeks before the quarter is closed,” he wrote.” [Deadline]
Jun And Associates Accused Of Breaking Federal Law. “The SEC’s complaint, filed in federal court in Seattle, charges Sung Mo Jun, Joon Jun, Chon, Lee, and Bae with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Sung Mo Jun, Joon Jun, Chon, and Lee have consented to the entry of judgments which, if approved by the court, would permanently enjoin each from violating the charged provisions, with civil penalties, if any, to be decided later by the court. ” [SEC]
One of the first political bloggers in the world, Oliver Willis has operated OliverWillis.com since 2000. Contributor at Media Matters for America and The American Independent. Follow on Twitter at @owillis. Full bio.