Hong Kong insider traders handed prison sentences

21 July 2009

A Hong Kong fund manager has been sentenced to 12 months in prison for carrying out insider trading.

Ryan Fong, formerly of HSZ (Hong Kong) was also fined $177,000 for trading in shares of Media Partners International Holdings four years ago.

Allen Lam, a former banker for the Asia-Pacific markets, was given a six-month jail term for his role in the crime and fined $8,900.

The pair admitted insider trading earlier this month after they were found by the Securities and Futures Commission to have used private information to purchase a stake in the company prior to a takeover offer from JCDecaux SA, a move that resulted in the share price of Media Partners rising.

According to Bloomberg, those found guilty of insider trading on Hong Kong can be sentenced to up to ten years in prison.

The SFC, which declined to comment on the sentences, has increased its efforts to clamp down on the crime over the past year.

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