SEC v. SHAOHUA (MICHAEL) YIN; and BENJAMIN BIN CHOW, No. 1:17-cv-00972-JPO, Southern District of New York (Aug. 30, 2024) — Judgment

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
vs.
SHAOHUA (MICHAEL) YIN and BENJAMIN
BIN CHOW,
Defendants, and
LIZHAO SU, ZHIQING YIN, JUN QIN, YAN
ZHOU, BEI XIE, and CHAOFENG JI,
Relief Defendants.
CONSENT OF DEFENDANT SHAOHUA (MICHAEL) YIN
Case No. 1 : 1   7-cv-00972-JPO
C
ONSENT AND FINAL JUDGMENT
A
S TO DE  FENDANT SHAOHUA
(MICHAEL) YIN

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
SECURITIES AND EXCHANGE COMMISSION,
   Plaintiff,
            vs.
SHAOHUA (MICHAEL) YIN and BENJAMIN
BIN CHOW,
                                    Defendants,            and

LIZHAO SU, ZHIQING YIN, JUN QIN, YAN
ZHOU, BEI XIE,
                                    Relief            Defendants.

Case No. 1:17-cv-00972-JPO

FINAL JUDGMENT AS TO DEFENDANT SHAOHUA (MICHAEL) YIN
The Securities and Exchange Commission having filed a Complaint and Defendant
Shaohua (Michael) Yin (“Defendant”) having entered a general appearance; consented to the
Court’s jurisdiction over Defendant and the subject matter of this action; consented to entry of
this Final Judgment; waived findings of fact and conclusions of law; and waived any right to
appeal from this Final Judgment:
I.
 IT IS ORDERED, ADJUDGED, AND DECREED that Defendant is permanently
restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities
Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] and Exchange Act Rule 10b-5
[17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the

mails, or of any facility of any national securities exchange, in connection with the purchase or
sale of any security:
(a) to employ any device, scheme, or artifice to defraud;
(b) to make any untrue statement of a material fact, or to omit to state a material fact
necessary in order to make the statements made, in the light of the circumstances
under which they were made, not misleading; or
(c) to engage in any act, practice, or course of business which operates or would
operate as a fraud or deceit upon any person
by, among other things: (i) buying or selling a security of any issuer, on the basis of material
nonpublic information, in breach of a fiduciary duty or other duty of trust or confidence that is
owed directly, indirectly, or derivatively, to the issuer of that security or the shareholders of that
issuer, or to any other person who is the source of the information; or (ii) by communicating
material nonpublic information about a security or issuer, in breach of a fiduciary duty or other
duty of trust or confidence, to another person or persons for purposes of buying or selling any
security.
 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who
receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s
officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or
participation with Defendant or with anyone described in (a).
.

II.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall pay a
civil penalty in the amount of $39,500,000.00 to the Securities and Exchange Commission
pursuant to Section 21A of the Exchange Act [15 U.S.C. § 78u-1].
III.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that within 3 days of
being served with a copy of the Final Judgment, Interactive Brokers LLC shall sell any
remaining securities in the accounts of Relief Defendants at prevailing market prices and convert
all currencies held in those accounts to U.S. dollars.
IV.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED, that after transacting the
sales and currency conversions ordered in Section III supra, Interactive Brokers LLC shall
simultaneously transfer the following amounts from the accounts in the names of the Relief
Defendants as follows:
A. To Plaintiff Securities and Exchange Commission:  Interactive Brokers LLC shall
transfer the following amounts to Plaintiff Securities and Exchange Commission:
Name on Account  Acct. # Ending In Amount to be Transferred to the SEC
Lizhao Su UXXX9828 $16,123,177.98
Zhiqing. Yin  UXXX9198 $16,671,910.85
Jun Qin  UXXX8920 $4,894,881.81
Bei Xie UXXX3862 $810,029.36
Yan Zhou UXXX1566 $1,000,000.00

Interactive Brokers LLC may transmit payment electronically to the Commission, which will
provide detailed ACH transfer/Fedwire instructions to Interactive Brokers LLC.  Payment may
also be made directly from a bank account via Pay.gov through the SEC website at
http://www.sec.gov/about/offices/ofm.htm.  Interactive Brokers LLC also may transfer these
funds by certified check, bank cashier’s check, or United States postal money order payable to
the Securities and Exchange Commission, which shall be delivered or mailed to
Enterprise Services Center
Accounts Receivable Branch
6500 South MacArthur Boulevard
Oklahoma City, OK 73169

and shall be accompanied by a letter identifying the case title, civil action number, and name of
this Court; and specifying that payment is made pursuant to this Final Judgment.
 Interactive Brokers LLC shall simultaneously transmit photocopies of evidence of
payment and case identifying information to the Commission’s counsel in this action.  By
making this payment, Defendant Yin relinquishes all legal and equitable right, title, and interest
in such funds and no part of the funds shall be returned to Defendant.  The Commission shall
send the funds paid pursuant to this Final Judgment to the United States Treasury.
B. To Relief Defendants Lizhao Su, Zhiqing Yin, Jun Qin, Bei Xie, and Yan Zhou:
Interactive Brokers LLC shall transfer the following amounts to Relief Defendants Su, Zhiqing
Yin, Qin, Xie, and Zhou:
1. The remaining amounts in the accounts in the names of the Relief Defendant Su
(ending in UXXX9828); Relief Defendant Zhiqing Yin (ending in UXXX9198);
Relief Defendant Qin (ending in UXXX8920), and Relief Defendant Xie (ending
in UXXX3862), other than the amounts set forth in Section IV(A) above, to the

law firm of Wilson Sonsini Goodrich & Rosati, attorneys for those Relief
Defendants; and
2. The remaining amounts in the account of Relief Defendant Zhou (ending in
UXXX1566), other than the amounts set forth in Section IV(A) above, to the law
firm of Sercarz & Riopelle, attorneys for Relief Defendant Zhou.
Interactive Brokers LLC may transmit payment electronically to Wilson Sonsini Goodrich &
Rosati, and Sercarz & Riopelle, which will provide detailed ACH transfer/Fedwire instructions
upon request.
V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the preliminary
injunction entered in the Court’s March 23, 2017 Order (Dkt. No 27) imposing an asset freeze
over the accounts in the names of Relief Defendant Su (ending in UXXX9828); Relief Defendant
Z. Yin (ending in UXXX9198); Relief Defendant Qin (ending in UXXX8920), Relief Defendant
Xie (ending in UXXX3862), and Relief Defendant Zhou (ending in UXXX1566) shall and
hereby is modified for the sole purpose of permitting Interactive Brokers LLC to sell any
remaining securities in the accounts of Relief Defendants at controlling market prices and to
make the transfers specified in Sections IV above, and that following the completion of those
transfers, the asset freeze over the accounts in the names of Relief Defendant Su (ending in
UXXX9828); Relief Defendant Z. Yin (ending in UXXX9198); Relief Defendant Qin (ending in
UXXX8920), Relief Defendant Xie (ending in UXXX3862), and Relief Defendant Zhou (ending
in UXXX1566) shall be lifted and vacated.

VI.
 IT HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED, and the Court
hereby finds, that the funds to be transferred to the SEC pursuant to Section IV.A of the Final
Judgment represent the proceeds from Defendant Yin’s trading in Lattice and Dreamworks in the
accounts of the Relief Defendants.
VII.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED, and the Court hereby
finds, that the remaining funds to be transferred to the Relief Defendants pursuant to Section
IV.B of this Final Judgment belong to and are the separate property of the Relief Defendants, to
which they have a legitimate claim.
VIII.
 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes
of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, the
allegations in the complaint are true and admitted by Defendant, and further, any debt for
disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this
Final Judgment or any other judgment, order, consent order, decree or settlement agreement
entered in connection with this proceeding, is a debt for the violation by Defendant of the federal
securities laws or any regulation or order issued under such laws, as set forth in Section
523(a)(19) of the Bankruptcy Code, 11 U.S.C. § 523(a)(19).

IX.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is
incorporated herein with the same force and effect as if fully set forth herein, and that Defendant
shall comply with all of the undertakings and agreements set forth therein.
X.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain
jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.
XI.
There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil
Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.
Dated:  August 16, 2024             ____________________________________
UNITED STATES DISTRICT JUDGE

UNITED STATES DISTRICT COURT 
SOUTHERN DISTRICT OF NEW YORK 

SECURITIES AND EXCHANGE COMMISSION, 

Plaintiff, 

vs. 

SHAOHUA (MICHAEL) YIN and BENJAMIN 
BIN CHOW, 

Defendants, and 

LIZHAO SU, ZHIQING YIN, JUN QIN, YAN 
ZHOU, BEI XIE, and CHAOFENG JI, 

Relief Defendants. 

CONSENT OF DEFENDANT SHAOHUA (MICHAEL) YIN 

Case No. 1 : 1 7-cv-00972-JPO 

CONSENT AND FINAL JUDGMENT 
AS TO DEFENDANT SHAOHUA 
(MICHAEL) YIN 

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UNITED STATES DISTRICT COURT 
SOUTHERN DISTRICT OF NEW YORK 

SECURITIES AND EXCHANGE COMMISSION, 

   Plaintiff, 

 vs. 

SHAOHUA (MICHAEL) YIN and BENJAMIN 
BIN CHOW, 

   Defendants, and 

 

LIZHAO SU, ZHIQING YIN, JUN QIN, YAN 
ZHOU, BEI XIE, 

   Relief Defendants. 

 

Case No. 1:17-cv-00972-JPO 

 

 

 

 

 

FINAL JUDGMENT AS TO DEFENDANT SHAOHUA (MICHAEL) YIN 

The Securities and Exchange Commission having filed a Complaint and Defendant 

Shaohua (Michael) Yin (“Defendant”) having entered a general appearance; consented to the 

Court’s jurisdiction over Defendant and the subject matter of this action; consented to entry of 

this Final Judgment; waived findings of fact and conclusions of law; and waived any right to 

appeal from this Final Judgment: 

I. 

  IT IS ORDERED, ADJUDGED, AND DECREED that Defendant is permanently 

restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities 

Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] and Exchange Act Rule 10b-5 

[17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the 

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mails, or of any facility of any national securities exchange, in connection with the purchase or 

sale of any security: 

(a) to employ any device, scheme, or artifice to defraud;   

(b) to make any untrue statement of a material fact, or to omit to state a material fact 

necessary in order to make the statements made, in the light of the circumstances 

under which they were made, not misleading; or 

(c) to engage in any act, practice, or course of business which operates or would 

operate as a fraud or deceit upon any person 

by, among other things: (i) buying or selling a security of any issuer, on the basis of material 

nonpublic information, in breach of a fiduciary duty or other duty of trust or confidence that is 

owed directly, indirectly, or derivatively, to the issuer of that security or the shareholders of that 

issuer, or to any other person who is the source of the information; or (ii) by communicating 

material nonpublic information about a security or issuer, in breach of a fiduciary duty or other 

duty of trust or confidence, to another person or persons for purposes of buying or selling any 

security. 

 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in 

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who 

receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s 

officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or 

participation with Defendant or with anyone described in (a). 

. 

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II. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall pay a 

civil penalty in the amount of $39,500,000.00 to the Securities and Exchange Commission 

pursuant to Section 21A of the Exchange Act [15 U.S.C. § 78u-1].   

III. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that within 3 days of 

being served with a copy of the Final Judgment, Interactive Brokers LLC shall sell any 

remaining securities in the accounts of Relief Defendants at prevailing market prices and convert 

all currencies held in those accounts to U.S. dollars. 

IV. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED, that after transacting the 

sales and currency conversions ordered in Section III supra, Interactive Brokers LLC shall 

simultaneously transfer the following amounts from the accounts in the names of the Relief 

Defendants as follows: 

A. To Plaintiff Securities and Exchange Commission:  Interactive Brokers LLC shall 

transfer the following amounts to Plaintiff Securities and Exchange Commission: 

Name on Account  Acct. # Ending In Amount to be Transferred to the SEC  

Lizhao Su UXXX9828 $16,123,177.98 

Zhiqing. Yin  UXXX9198 $16,671,910.85 

Jun Qin  UXXX8920 $4,894,881.81 

Bei Xie UXXX3862 $810,029.36  

Yan Zhou UXXX1566 $1,000,000.00  

 

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Interactive Brokers LLC may transmit payment electronically to the Commission, which will 

provide detailed ACH transfer/Fedwire instructions to Interactive Brokers LLC.  Payment may 

also be made directly from a bank account via Pay.gov through the SEC website at 

http://www.sec.gov/about/offices/ofm.htm.  Interactive Brokers LLC also may transfer these 

funds by certified check, bank cashier’s check, or United States postal money order payable to 

the Securities and Exchange Commission, which shall be delivered or mailed to 

Enterprise Services Center 
Accounts Receivable Branch 
6500 South MacArthur Boulevard 
Oklahoma City, OK 73169 

 
and shall be accompanied by a letter identifying the case title, civil action number, and name of 

this Court; and specifying that payment is made pursuant to this Final Judgment. 

 Interactive Brokers LLC shall simultaneously transmit photocopies of evidence of 

payment and case identifying information to the Commission’s counsel in this action.  By 

making this payment, Defendant Yin relinquishes all legal and equitable right, title, and interest 

in such funds and no part of the funds shall be returned to Defendant.  The Commission shall 

send the funds paid pursuant to this Final Judgment to the United States Treasury. 

B. To Relief Defendants Lizhao Su, Zhiqing Yin, Jun Qin, Bei Xie, and Yan Zhou:  

Interactive Brokers LLC shall transfer the following amounts to Relief Defendants Su, Zhiqing 

Yin, Qin, Xie, and Zhou: 

1. The remaining amounts in the accounts in the names of the Relief Defendant Su 

(ending in UXXX9828); Relief Defendant Zhiqing Yin (ending in UXXX9198); 

Relief Defendant Qin (ending in UXXX8920), and Relief Defendant Xie (ending 

in UXXX3862), other than the amounts set forth in Section IV(A) above, to the 

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law firm of Wilson Sonsini Goodrich & Rosati, attorneys for those Relief 

Defendants; and  

2. The remaining amounts in the account of Relief Defendant Zhou (ending in 

UXXX1566), other than the amounts set forth in Section IV(A) above, to the law 

firm of Sercarz & Riopelle, attorneys for Relief Defendant Zhou.   

Interactive Brokers LLC may transmit payment electronically to Wilson Sonsini Goodrich & 

Rosati, and Sercarz & Riopelle, which will provide detailed ACH transfer/Fedwire instructions 

upon request.  

V. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the preliminary 

injunction entered in the Court’s March 23, 2017 Order (Dkt. No 27) imposing an asset freeze 

over the accounts in the names of Relief Defendant Su (ending in UXXX9828); Relief Defendant 

Z. Yin (ending in UXXX9198); Relief Defendant Qin (ending in UXXX8920), Relief Defendant 

Xie (ending in UXXX3862), and Relief Defendant Zhou (ending in UXXX1566) shall and 

hereby is modified for the sole purpose of permitting Interactive Brokers LLC to sell any 

remaining securities in the accounts of Relief Defendants at controlling market prices and to 

make the transfers specified in Sections IV above, and that following the completion of those 

transfers, the asset freeze over the accounts in the names of Relief Defendant Su (ending in 

UXXX9828); Relief Defendant Z. Yin (ending in UXXX9198); Relief Defendant Qin (ending in 

UXXX8920), Relief Defendant Xie (ending in UXXX3862), and Relief Defendant Zhou (ending 

in UXXX1566) shall be lifted and vacated. 

 

 

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VI. 

 IT HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED, and the Court 

hereby finds, that the funds to be transferred to the SEC pursuant to Section IV.A of the Final 

Judgment represent the proceeds from Defendant Yin’s trading in Lattice and Dreamworks in the 

accounts of the Relief Defendants.  

VII.  
 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED, and the Court hereby 

finds, that the remaining funds to be transferred to the Relief Defendants pursuant to Section 

IV.B of this Final Judgment belong to and are the separate property of the Relief Defendants, to 

which they have a legitimate claim. 

VIII.  

 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes 

of exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. § 523, the 

allegations in the complaint are true and admitted by Defendant, and further, any debt for 

disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this 

Final Judgment or any other judgment, order, consent order, decree or settlement agreement 

entered in connection with this proceeding, is a debt for the violation by Defendant of the federal 

securities laws or any regulation or order issued under such laws, as set forth in Section 

523(a)(19) of the Bankruptcy Code, 11 U.S.C. § 523(a)(19). 

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IX. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is 

incorporated herein with the same force and effect as if fully set forth herein, and that Defendant 

shall comply with all of the undertakings and agreements set forth therein. 

X. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain 

jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. 

XI. 

There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil 

Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice. 

Dated:  August 16, 2024             ____________________________________ 
UNITED STATES DISTRICT JUDGE 

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