Hong Kong Securities And Futures Commission: Former Staff Of Hong Kong Television Network Limited Jailed For Insider Dealing

The Eastern Magistrates' Court today sentenced Mr Ken Yiu Ka Lun to two and a half months of imprisonment after he was convicted of insider dealing in the shares of Hong Kong Television Network Limited (HKTV) in a prosecution brought by the Securities and Futures Commission (SFC) (Note 1).

Yiu was also ordered to pay a fine of $165,000 and the SFC's investigation costs in the sum of $147,560.

The Court heard that Yiu purchased 101,000 HKTV shares on 19 and 20 December 2013 when he was involved in HKTV's acquisition of a mobile television licence in his capacity as the company’s senior regulatory affairs manager (Note 2).

Yiu subsequently disposed of all his HKTV shares after the announcement of HKTV's acquisition of the mobile television licence on 20 December 2013 and made a profit of $163,810 (Note 3).

"No person should take advantage of their position of trust to enrich themselves by dishonest means.  It is particularly serious when a person in that position knowingly uses confidential information to profit from insider dealing," said the SFC’s Executive Director of Enforcement, Mr Thomas Atkinson.

"Where the SFC identifies such abuse by any person, it will not hesitate to bring criminal proceedings to deter others from doing so," Mr Atkinson added.

Notes:

1. Please see the SFC press releases on 24 October 2019 and 5 November 2019.
2. Yiu resigned from HKTV in November 2016.
3. Following HKTV's announcement, the share price of HKTV increased 66% from the previous closing price to close at $3.85 on 23 December 2013.