New York (HedgeCo.Net) – The Securities and Exchange Commission today announced that two Hong Kong-based asset management firms whose accounts were frozen in a major insider trading case have agreed to pay nearly $11 million to settle the charges against them.<\/p>\n
The SEC obtained an emergency asset freeze in July 2012 against unknown traders just days after the announcement that China-based CNOOC Ltd. had agreed to acquire Canadian energy company Nexen Inc., causing more than a 50 percent spike in the price of Nexen shares. The SEC filed the emergency action after discovering that traders using brokerage accounts in Hong Kong and Singapore stood to make more than $13 million in potentially illicit profits.<\/p>\n
Combined with earlier settlements in the case, the SEC has now obtained nearly $30 million in ill-gotten gains plus financial penalties from foreign traders who purchased Nexen stock while in possession of nonpublic information about the pending acquisition.<\/p>\n
\u201cThe SEC\u2019s swift action in this case ensured that traders located on the other side of the globe were not only deprived of their illegal insider trading profits but eventually paid steep penalties,\u201d said Sanjay Wadhwa, senior associate director for enforcement in the SEC\u2019s New York Regional Office. \u201cOur efforts have recouped nearly $30 million and sent a strong deterrent message that insider trading in the U.S. even if carried out from overseas simply doesn\u2019t pay.\u201d<\/p>\n
CITIC Securities International Investment Management (HK) Limited and China Shenghai Investment Management Limited agreed to pay $6.6 million and $4.3 million respectively. These two firms managed the last remaining frozen accounts in the case. Once SEC investigators located the suspicious accounts and froze their assets, they worked with foreign regulators and carefully scrutinized the trading records to identify the traders, setting the stage for a string of settlements by firms and individuals:<\/p>\n
Hong Kong-based firm Well Advantage agreed to a $14.2 million settlement in October 2012.
\nA Chinese businessman, his private investment company, and his wife and her brokerage customers agreed to a $3.3 million settlement in March 2013.
\nA Singapore-based businesswoman agreed to a $566,000 settlement in May 2013.
\nThe settlement with China Shenghai, approved earlier today by Judge Richard J. Sullivan of the U.S. District Court for the Southern District of New York, requires disgorgement of all ill-gotten gains totaling $4,268,057.16 by the firm and eight clients on whose behalf Nexen stock trades were made in the week leading up to the public announcement: Biggain Holdings Limited, Classictime Investments Limited, Feng Hai Yan, Gao Mei, Sparky International Trade Co., Stephen Wang Sang Wong, Zhang Jing Wei, and Zheng Rong. They neither admitted nor denied the allegations.<\/p>\n","protected":false},"excerpt":{"rendered":"
New York (HedgeCo.Net) – The Securities and Exchange Commission today announced that two Hong Kong-based asset management firms whose accounts were frozen in a major insider trading case have agreed to pay nearly $11 million to settle the charges against […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-40575","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/40575","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=40575"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/40575\/revisions"}],"predecessor-version":[{"id":40576,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/40575\/revisions\/40576"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=40575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=40575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=40575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}