The Hong Kong Securities and Futures Commission (SFC) is taking a dim view of Tiger Asia Management. The regulator banned the hedge fund from trading following two separate accusations of insider trading that took place in 2008-9. SFC issued a civil ban, as it lacks the jurisdiction for a criminal case.
Simon Westbrook, an SFC representative, stated: "This is a blatant case of insider dealing that happened on more than one occasion by the same outfit. Unfortunately all of the defendants are based in New York. None of them are within the jurisdiction."
However, if any of the three Tiger Asia executives—founder Bill Hwang, head of trading Raymond Park and trade assistant William Tomita, suddenly find themselves in Hong Kong, they will be subject to arrest.
The SFC also wants to freeze approximately $5 million in company assets. According to them, Hwang ordered two illegal trades after garnering confidential information about a couple of Bank of China share placements in 2008 and 2009. The regulator had previously charged Tiger Asia with illegally trading shares of China Construction Bank Corp.
Tiger Asia is denying all wrongdoing, and has asked a Hong Kong court to dismiss the case. Their somewhat disingenuous logic: "It is not appropriate for a civil court to determine what is essentially a criminal offense," according to Tiger Asia's attorney Charles Sussex at court today.
Tiger was served by a subpoena from the U.S. Securities and Exchange Commission last year, apparently arising from the Hong Kong investigation.
© 2011 Hedge Fund Writer LLC
