Mr Li, a former Dow Jones board member, was ordered to pay an US$8.1-million civil penalty to settle the probe, which came about as Rupert Murdoch's News Corp. launched last year its takeover bid, which was ultimately successful, the Securities and Exchange Commission (SEC) said.

The four persons, all from Hong Kong, settled the probe without admitting or denying the allegations, the stock market watchdog said.

Officials said Mr Li, whose full name was listed as David Li Kwok Po, who also is chairman and chief executive of the Bank of East Asia and a member of Hong Kong's Legislative Counsel and Executive Committee, learned of the then-secret offer and illegally tipped his close friend Michael Leung Kai Hung.

An SEC complaint alleged that Mr Leung, with the help of his daughter Charlotte Ka On Wong Leung and son-in-law Kan King Wong purchased some US$15 million worth of Dow Jones shares in their account at Merrill Lynch after the tip.

They stood to make about US$8 million in illicit profits but the SEC won an emergency court order within days of the News Corp. offer, freezing the account and stopping the money from being transferred, the SEC said.

Michael Leung was ordered to pay US$8.1 million in 'disgorgement' plus interest and a fine of US$8.1 million.

Mr Wong was ordered to pay US$40,000 in disgorgement plus interest and a US$40,000 civil penalty.

'Protecting the integrity of our markets in today's world of global trading and instant communications requires real-time enforcement across national borders,' said SEC chairman Christopher Cox.

'This case makes clear that the SEC will move fast, and decisively, not only in the United States but around the world to protect investors from insider dealings and threats to fair and open markets.'

Officials said they received cooperation from Merrill Lynch and the Hong Kong Securities and Futures Commission in the investigation.

Authorities began looking into suspicious trading in Dow Jones & Co. weeks before the May 1 bid by Rupert Murdoch's News Corp. for the company that had owned the Wall Street Journal.

News Corp. eventually sealed the deal and acquired Dow Jones on Dec 13 for about US$5.6 billion. -- AFP