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Solicitor prosecuted for alleged insider trading

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A solicitor (attorney) who was advising a company on a proposed purchase of a large stake in another company has been accused of using non-public information to make share transactions and profit therefrom.

Hong Kong's Securities and Futures Commission (SFC) commenced criminal proceedings in the Eastern Magistrates’ Court yesterday against Mr. Leung Pak Keung, a practising solicitor, over alleged insider dealing in the shares of CASH Financial Services Group Limited (CFSG). CASH Financial Services Group Limited was listed on the Main Board of the Stock Exchange of Hong Kong Limited in 2008.

The SFC alleges that between 18 December 2014 and 2 January 2015, Leung, at the time a legal adviser to Oceanwide Holdings (Hong Kong) Co. Limited in respect of its proposed acquisition of a 44% stake in CFSG, purchased a total of 2,112,000 CFSG shares.

Leung, who allegedly purchased the CFSG shares whilst in possession of CFSG-specific, non-public and price sensitive information, disposed of all his CFSG shares and made a profit of HKD45,300 after the announcement of the proposed corporate acquisition on 12 January 2015. Leung sold 852,000 CFSG shares before the publication of the announcement on 12 January 2015 and the remaining 1,260,000 shares after the announcement.

No plea was taken and the hearing was adjourned to 9 May 2019.

 


 

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