The Securities and Futures Commission (SFC) commenced criminal proceedings in the Eastern Magistrates’ Court today against Mr. Leung Pak Keung, a practising solicitor, over alleged insider dealing in the shares of CASH Financial Services Group Limited (CFSG) (Note 1).
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 $45,300 after the announcement of the proposed corporate acquisition on 12 January 2015 (Note 2).
No plea was taken and the hearing was adjourned to 9 May 2019.
Notes:
- CASH Financial Services Group Limited was listed on the Main Board of the Stock Exchange of Hong Kong Limited in 2008.
- Leung sold 852,000 CFSG shares before the publication of the 12 January 2015 announcement and the remaining 1,260,000 shares after the announcement.