Former Chinney executive accused of insider dealing
A former Chinney Alliance Group corporate finance officer engaged in insider dealing before the company's 1999 share placements, it was alleged at a preliminary tribunal hearing yesterday.
Joseph Lau Chung-yin, and Rozalin Pui Li, whose background was not disclosed, are accused of insider trading violations between September 1 and October 4, 1999.
During the period, the company's stock soared amid speculation that mobile-telephone operator Sunday would seek a backdoor listing using a share transaction with Chinney. The rumour was dispelled by Sunday.
However, in three subsequent placements, Chinney raised HK$249.5 million of which some was used to finance its US$2.5 million acquisition of online music e-trade website, OneAsia.com, in January 2000.
It was not specified how Mr Lau and Ms Pui are alleged to have profited from insider information.
Formal tribunal hearings begin on June 1.