A former director of Dow Jones was forced to pay $US8.1m (£4.1m) to USA’s Securities and Exchange Commission (SEC) yesterday for his part in attempted insider dealing at a time when News Corporation had made a secret offer to buy the company.
Sir David Li, also a Hong Kong legislator and Bank of East Asia chief executive, allegedly told a friend, Michael Leung, who in turn passed on the information to his daughter and son-in-law, according to an SEC statement.
Leung’s two relatives bought $US15m in Dow Jones stock in anticipation for the stocks to rise when news of the bid became public, making an estimated $8m on the transaction.
Sir David was ordered to pay $US8.1m in a civil penalty but escaped being barred from serving as a company director in the US, while Michael Leung was told to offer up $US16.2m, although in a settlement with the US regulator neither of them admitted or denied the SEC’s allegations.
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