BusinessCompany NewsFormer Dow Jones director penalised by $US8.1m

Former Dow Jones director penalised by $US8.1m

A former Dow Jones director agree to pay $US8.1m for his part in insider trading linked to News Corp offer

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.

Read
story in The Times

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