Hong Kong: Former Investment Banker Found Guilty in First-Ever Insider Trading Trial

In Hong Kong, a former investment banker with BNP Paribas Peregrine Capital and four others have been found guilty of insider trading in the first-ever trial for such an offense under the Securities and Futures Ordinance. The Standard reports that Ma Hon-yeung, Ivy Lo Yuk-wah, Sammy Ma Hon-kit, Cordelia Tso Kin-wah and Ronald Ma Chun-ho were found guilty of trading shares in Egana Jewellery & Pearls before the company announced a privatization plan on July 11, 2006. Ma Hon-yeung, a former VP of BNP Paribas, acted as a financial consultant for Egana during the privatization move. His girlfriend, Lo, bought 1.51 million shares in Egana between June 20 and July 6, 2006, The Standard reports.

Ma Hon-yeung was remanded in custody and will be sentenced on April 1.  The other four will reportedly only have to perform community service.

Read The Standard article