Saturday, July 28, 2012

SEC Accuses Billionaire's Firm Of Insider Trading




From Forbes: A trading firm controlled by Hong Kong billionaire Zhang Zhirong reaped more millions in illegal profits by trading on inside information about the biggest energy deal in recent memory, U.S. regulators say.
In a complaint released Friday, the SEC alleges Well Advantage Limited and other unknown traders in Hong Kong and Singapore stockpiled shares of Canadian energy concern Nexen in the days before Chinese firm CNOOC announced a $15.1 billion acquisition of the company July 23.
The SEC froze the assets’ of the traders in question after Well Advantage moved to liquidate its entire position in Nexen after shares leaped on news of the CNOOC takeover. Zhang Zhi Rhong, the SEC’s Enforcement Division says controls another company that has a strategic agreement with CNOOC.

“Well Advantage and these other traders engaged in an all-too-familiar pattern of misusing inside information to place extremely timely trades and profit handsomely from their illegal acts,” said the SEC’s Sanjay Wadhwa…

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