This appears to be a civil, not criminal matter (I believe the SEC can only bring civil charges within it's legal purview). Regardless, this is not a legal headache you want to deal with:
Jason Genet, a prominent Phoenix-based manager of mixed martial artists including Shane Carwin, Benson Henderson and Efrain Escuedro, is alleged to have acted in concert with other parties to perpetrate a "pump and dump" manipulation of the common stock of China Energy Savings Technology, Inc., according to a complaint filed by the Securities and Exchange Commission.
The suit, filed in September in the U.S. District Court in the Eastern District of New York, alleges that from at least 2004 through 2006 Genet helped China Energy, a now defunct company, falsely obtain a listing on the Nasdaq National Market System; engage in unregistered distributions of securities; and enter into "secret arrangements to give away China Energy stock to persons who agreed to purchase China Energy stock in the market, and thereby created the false and misleading impression of active trading and interest in China Energy."
The SEC complaint alleges Genet "realized in excess of $1,700,000 from his sales of China Energy shares."
When contacted by SI.com, Genet declined to comment on "ongoing litigation."
Background on "pump and dump" schemes. You know MMA hit the big time when the news about illegal activity moves from people being knocked out at porn industry parties to accusations of financial fraud. We've arrived, everyone.
UPDATE [from Luke Thomas]: The original headline in this post said Genet was being sued for insider trading, which is incorrect. "Pump and dump" is a form of stock fraud.