Hong Kong court orders asset freeze on three individuals linked to TeleEye Holdings pending SFC investigation
A Hong Kong court has granted an interim order to freeze HK$38.85 million of assets from three individuals facing investigation from the Securities and Futures Commission for suspected insider dealing activities related to the share trading of TeleEye Holdings in March and April 2016, according to a statement from the regulator.
TeleEye, which listed in Hong Kong in 2001, has since been renamed as CircuTech International Holdings.
The Court of First Instance has granted an interim order against Yik Fong-fong, who was an executive director and chief executive officer of Hong Kong listed Chinese Energy Holdings until last August. The order, as applied by the SFC, bans her from removing assets up to HK$25.899 million from Hong Kong.
The court order also requires two of Yik’s alleged associates Wei Juan and Huang Yi to pay into the court a total of HK$12.95 million, an amount which the SFC said was equal to the suspected profit made by the three in the alleged insider dealing activities in shares trading of TeleEye Holdings
“The SFC alleges that Yik held confidential information concerning TeleEye and bought 22.72 million TeleEye shares through the securities accounts of Wei and Huang in March and April 2016,” the SFC said, while it did not give more details.
The SFC said “it is prudent to seek a freezing order to prevent” the trio from transferring their assets, including the suspected profits of their trading, out of Hong Kong.
The action was taken as
Under Hong Kong law, insider trading is a criminal offence. As part of sentencing the court can order financial penalties in addition to compensation payments to investors who suffered as a result of the insider trading.