Two Hong Kong firms to pay $13.9m to settle SEC insider trading charges
NEW YORK (REUTERS) - Two Hong Kong asset management firms have agreed to pay US$10.9 million (S$13.9 million) to settle charges by the United States (US) Securities and Exchange Commission of insider trading ahead of a bid by China's CNOOC for Canadian oil company Nexen Inc.
The proposed accord, disclosed in a court filing on Monday, would add to the more than US$18 million the US securities regulator had previously secured in settlements as part of an investigation into suspicious trading linked to the July 2012 deal.
China Shenghai Investment Management Limited and eight of its clients including an individual named Stephen Wong have agreed to give up nearly US$4.27 million in profits realized trading in Nexen stock.
CITIC Securities International Investment Management (HK) Ltd, a joint venture between CITIC Securities International Company Ltd and a company owned by China Shenghai's principal, James Wang, has agreed to pay nearly US$6.6 million in disgorged profits and penalties.