On September 20, 2017, Peter C. Chang, the former President, CEO and Chair of the Board of Directors of Alliance Fiber Optic Products, Inc. (“AFOP”), was arrested and charged with securities fraud and fraud in connection with a tender offer. AFOP, which is publicly traded on the NASDAQ, is a manufacturer of fiber optic components based in Sunnyvale, California. According to the government, Chang acquired confidential information about AFOP based on his position in the company, and traded AFOP stock through brokerage accounts in the names of his wife and brother based on that material nonpublic information. Some of the information that allegedly informed his trading included information that AFOP was in negotiations to be acquired by another company. The SEC has also filed civil charges against Chang, alleging insider trading and failure to report stock transactions. U.S. v. Chang, No. 1:17-71312 (N.D. Ca.).