As previously discussed here, Lam, a former investment banking director at Hong Kong-based CLSA, was sentenced to six months in jail after pleading guilty to charges that he tipped off Ryan Fong, former hedge fund manager at HSZ, on a takeover bid for Media Partners. Fong was sentenced to a year in prison and fined HK$1.37 million for purchasing shares in Media Partners following Lam’s tip. Fong reportedly made over HK$4 million in profit.
“Lam’s conduct violated the trust expected of him as a licensee,” SFC’s Executive Director of Enforcement Mark Steward said. “There is no place for licensees who misuse confidential information and enter into arrangements like this to deceive the market.”