Share account transfers revealed
The mystery surrounding the circumstances which led to a Hong Kong couple being accused by US authorities of insider dealing in Dow Jones stock ahead of a proposed bid for the company by News Corporation deepened yesterday as further details of the legal action emerged.
The US Securities and Exchange Commission (SEC) has accused Charlotte Wong Leung Ka-on - a former China Mobile People's Telephone director - and Wong Kan-king of using inside information to buy US$15 million of Dow Jones stock.
The SEC says in court papers that US$3.1 million was transferred to the Wongs' account with Merrill Lynch in Hong Kong on April 18 from her father, businessman Michael Leung Kai-hung. The SEC alleges that this money was used to buy some of the Dow Jones stock in question.
The Wall Street Journal said: 'One possible connection the US SEC is expected to pursue involves Dow Jones director David Li [Kwok-po], chairman and chief executive of Bank of East Asia.'
The report said: 'Mr Leung and Mr Li share a history of business and social dealings.' But Mr Li told the Journal: 'I did not disclose to anyone, not even my wife, any information about Dow Jones.' He added: 'I know Michael [Leung], and he is a friend, but I certainly did not talk to him about Dow Jones.'
Mr Li told the daily he did not recall exactly when he learned about the offer by Rupert Murdoch's News Corp but believed it was during a telephonic board meeting before Dow Jones' April 18 annual meeting, according to the report.
