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ICAC-SFC Joint Operation Arrests 8 Individuals Including Executives of Licensed Institutions for Insider Trading and Corruption
Recommend 7 Positive 15 Negative 4 |
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The Independent Commission Against Corruption (ICAC) and the Securities and Futures Commission (SFC) conducted a joint operation codenamed "Fuse" on March 10 and 11 targeting insider dealing and involving corruption. Senior executives of three licensed corporations, including two securities firms and a hedge fund management firm, were persons of interest in the case. During the joint operation, officers of the ICAC and the SFC searched a total of 14 locations, including the offices of the licenced corporations, as well as residences of the arrestees. The ICAC also arrested six men and two women, aged between 35 and 60. The arrestees included, among others, senior executives of the two licenced securities firms and the licensed hedge fund management firm, as well as a middleman. It is suspected that senior executives of the licenced securities firms had accepted bribes over $4 million from the owner of the licensed hedge fund management firm for disclosing confidential information regarding share placements of various Hong Kong - listed companies. The licensed hedge fund management firm established short positions for its hedge fund in the relevant stocks by short selling the stocks in the market and/or entering into short equity swap contracts. When the share placements were publicly announced, the share prices of the concerned stocks declined, and the hedge fund allegedly made profits of around $315 million from its short positions. The joint operation stemmed from the SFC’s initial investigation of the suspected insider dealing activities, which uncovered potential corruption. The case was subsequently referred to the ICAC for investigation into suspected corruption, while the SFC focused on insider dealing and other misconduct under the Securities and Futures Ordinance. As the investigation is ongoing, no further comments will be made by the ICAC and the SFC. AASTOCKS Financial News Website: www.aastocks.com |
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