An insider dealing inquiry involving former Hanny Magnetics (Holdings) chairman Wong Sun is in danger of collapsing amid accusations the securities watchdog carried out its probe 'above the power of the law'.
The first day of the inquiry yesterday saw the Securities and Futures Commission in the hot seat, under fire for conducting a criminal and an insider dealing investigation at the same time. Counsel for Mr Wong, Kenneth Chow, argued that such a 'mixed' investigation sparked a 'real risk that undue pressure is being brought to bear on witnesses'.
The SFC carried out a criminal investigation - relating to the alleged non-disclosure of information by Hanny Magnetics directors - and a civil one, relating to alleged insider dealing between July 1994 and August 1995.
Mr Chow said no criminal charges were laid against Mr Wong.
The barrister told the insider dealing tribunal there was a clear possibility witnesses were all 'subjected to the possibility of being criminally implicated' unless satisfactory answers were given.
'I can't say which witnesses might have been affected and to what extent. That's exactly the reason why the risk of prejudice is so real to the defendants,' Mr Chow said.
