SEC settles case for more than US$14m
By Richard Fu |
October 20, 2012, Saturday
|
Print Edition
Print Edition
A Hong Kong-based firm controlled by the chairman of China's largest private shipbuilder has agreed to pay more than US$14 million to settle an insider trading case with the US securities regulator.
The US Securities and Exchange Commission froze Well Advantage Ltd's assets in July after it found the firm had sought to liquidate its entire position in Nexen Ltd, a US-listed Canadian oil producer that CNOOC Ltd, China's largest offshore oil producer, had targeted to acquire.
The SEC alleged that Well Advantage had stockpiled shares of Nexen based on confidential information before the takeover bid was unveiled on July 23, when Nexen rose more than 50 percent.
The payment Well Advantage agreed on is double the amount of its alleged illicit profits, the SEC said on Thursday. The proposed settlement is subject to court approval in New York.
"If approved by the court, Well Advantage has agreed to give up all of its ill-gotten profits from these trades and pay a substantial penalty on top of that," said Sanjay Wadhwa, deputy chief of the SEC Enforcement Division's Market Abuse Unit. "The speedy resolution of this case shows the serious consequences that await traders who engage in insider trading."
Well Advantage has neither admitted nor denied the charges. The company is controlled by Zhang Zhirong, chairman and founder of China Rongsheng Heavy Industries Group Holdings Ltd.
The US Securities and Exchange Commission froze Well Advantage Ltd's assets in July after it found the firm had sought to liquidate its entire position in Nexen Ltd, a US-listed Canadian oil producer that CNOOC Ltd, China's largest offshore oil producer, had targeted to acquire.
The SEC alleged that Well Advantage had stockpiled shares of Nexen based on confidential information before the takeover bid was unveiled on July 23, when Nexen rose more than 50 percent.
The payment Well Advantage agreed on is double the amount of its alleged illicit profits, the SEC said on Thursday. The proposed settlement is subject to court approval in New York.
"If approved by the court, Well Advantage has agreed to give up all of its ill-gotten profits from these trades and pay a substantial penalty on top of that," said Sanjay Wadhwa, deputy chief of the SEC Enforcement Division's Market Abuse Unit. "The speedy resolution of this case shows the serious consequences that await traders who engage in insider trading."
Well Advantage has neither admitted nor denied the charges. The company is controlled by Zhang Zhirong, chairman and founder of China Rongsheng Heavy Industries Group Holdings Ltd.
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