In Hong Kong, Andy Lam King Hung, an accounting manager at Chinese Estates Holdings Ltd., was convicted on two criminal charges of insider dealing in the shares of Chi Cheung Investment Co, Ltd. He was remanded in custody pending his sentencing April 20, 2009, AHN reports.
An investigation by Hong Kong’s Securities and Futures Commission found that in 2007, while employed as an accountant by a subsidiary of Chinese Estates, Lam learned of a proposed asset swap between Chinese Estates and Chi Cheung. AHN reports that Lam placed orders in his own account as well as his wife’s to buy Chi Cheung shares before the asset swap proposal was announced publicly, and made a profit of HK$209,000 when the transaction was announced.
Mark Steward, the SFC’s Executive Director of Enforcement, said that the case “marks the third criminal conviction for insider dealing secured by the SFC in the last 12 months.” According to AHN, he added that the case was a “serious one because it involved a professional misusing confidential information gained in his job. Insider dealing is a dishonest act and the SFC will continue to prosecute these cases and seek jail terms wherever appropriate to ensure Hong Kong’s markets remain clean.”