SEC v. Hyung Lim, Case No. 12-CV-6707 (S.D.N.Y.). On September 4, 2012, the SEC charged Hyung Lim with insider trading. Lim obtained information about Nvidia Corporation’s quarterly earnings announcements from a friend who worked there. Lim would then tip hedge fund manager Danny Kuo. Lim gave Kuo information about Nvidia’s revenues and profit margins, among other things. Kuo compensated Lim for the tips in cash and with illegal tips which Lim used to make more than $11,000 in trading profits. Kuo and his hedge funds, which were charged earlier this year, made nearly $16 million trading in Nvidia securities based on Lim’s tips.
The SEC charged Lim with violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The SEC is seeking civil monetary penalties, disgorgement, and order barring him from serving as an officer or director of a public company, and an injunction against future violations of the anti-fraud provisions of the federal securities laws.