Nicholas Zanen, Insider Trading, Connecticut 2023

Belgian Citizen Sentenced for Insider Trading in Connecticut

Nicholas Zanen, 46, a Belgian citizen, was sentenced to 15 months in prison for insider trading in Connecticut. He was also ordered to pay a $6,000 fine.

According to court documents and statements made in court, Zanen was employed by Cheniere Energy, Inc., a Houston-based energy company, as a vice president of trading in the United Kingdom Branch. He had access to non-public information concerning Cheniere's deals, financings, and other business information.

Between November 2011 and December 2012, Zanen disclosed Cheniere inside information to a friend, Francis J. Van Steenberge, and advised him whether to buy or sell Cheniere securities. Zanen and Van Steenberge generated approximately $1 million through this scheme.

Zanen also caused to be made materially false and fraudulent statements to the Financial Industry Regulatory Authority (FINRA) that he was unaware of the circumstances under which Van Steenberge gained knowledge of Cheniere's business activities.

On June 4, 2014, a federal grand jury in New Haven returned an indictment charging Zanen with one count of conspiracy to commit securities fraud and three counts of securities fraud. He was apprehended on April 22, 2019, in Pisa, Italy, and extradited to the U.S. on June 13, 2019.

Zanen pleaded guilty to one count of conspiracy to commit securities fraud on August 12, 2019. He has been detained since his arrest.

In the companion case, Securities and Exchange Commission v. Nicolas Zanen and Francis J. Van Steenberge, Zanen has paid the SEC a disgorgement, plus interest and penalties, totaling $832,398.45.

This investigation has been conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.

U.S. Attorney Durham thanked the U.S. Department of Justice's Office of International Affairs for its assistance in this matter, in particular former DOJ Rome Attache' Cristina Posa.

U.S. Attorney Durham stressed that protecting the integrity of the capital markets and ensuring that individuals comply with our nation's securities laws is a priority of the Justice Department.

Individuals who believe that they have been victimized by this insider trading scheme should contact the FBI in New Haven at 203-777-6311.

Mandatory Facts:

• Defendant/Respondent: Nicholas Zanen
• Criminal Charges: Conspiracy to commit securities fraud, securities fraud
• City and State: Hartford, Connecticut
• Exact Date: April 22, 2019 (arrest), June 13, 2019 (extradition), August 12, 2019 (plea), April 4, 2023 (sentencing)
• Sentence or Outcome: 15 months in prison, $6,000 fine
• Dollar Amounts: $1 million (illegal gains), $832,398.45 (disgorgement and penalties)

Source: https://www.justice.gov/usao-ct/pr/belgian-citizen-sentenced-insider-trading