Hong Kong duo plead guilty to insider trading

8 July 2009

A former investment banker and an ex-fund manager have pleaded guilty to insider trading in Hong Kong.

Allen Lam - formerly of investment bank CLSA - and Ryan Fong - once of HSZ - admitted the charges, which related to the sale of shares in Media Partners International Holdings.

The Securities and Futures Commission stated that in 2005 Lam informed Fong that a buyer would be purchasing a controlling stake in the company, a deal that the CLSA was acting as the financial advisor for.

Fong used the information to purchase shares in the company for both himself and a HSZ fund, which he then sold following the takeover to make a profit of US$435,000 for the fund and US$133,000 for himself.

The conviction is the eighth made by the SFC over the past year, as it seeks to clamp down on insider trading in Hong Kong.

Insider trading is also being investigated by authorities in Sweden, where the National Economic Crimes Bureau is to explore allegations made against Jan Barchan, a Studsvik board member.

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