The U.S. Securities and Exchange Commission (SEC) is considering taking "civil enforcement action" against Eva Chen, CEO of Trend Micro, over alleged security trading violations involving her husband, the Tokyo-based anti-virus giant announced Wednesday.
The SEC is investigating whether Chen's husband, Daniel Chiang, was in violation of the Securities Exchange Act of 1934 while he was serving as the co-chairman of SINA Corp., a Chinese online media company, according to a Trend Micro statement. The SEC also is investigating whether Chen underreported her holdings in Trend Micro shares.
"The company is not aware of any allegations against Ms. Chen that would be attributable to the company," the statement said. "The board of directors and the board of corporate auditors are monitoring the effects of this development on the company."
Shares of Trend Micro fell about 2 percent today.
SEC spokesman John Nester said the agency does not comment on investigations. Trend Micro spokesman Michael Sweeny said the company is not commenting beyond the statement.
Chen co-founded Trend Micro in 1988 and served as its CTO form 1996 to 2004, when she took over as the CEO from Steve Chang, also a co-founder.
Chiang joined SINA in 1996 and served as CEO before being elected chairman of the board, according to the SINA website. Prior to joining the company he served as president of Trend Micro North America, expanding the 10-person business into a firm earning more than $60 million in revenue in 1997. He left SINA's board of directors on March 7.