Hong Kong movie producer Raymond Wong was found guilty on May 22 for instigating his younger sister Jenny Wong to engage in insider trading involving shares in an entertainment company, in which he was the chairman and has a controlling stake.
The conviction came after a 16-day criminal trial, according to a press statement by the Securities and Futures Commission (SFC) of Hong Kong, which brought the criminal prosecution.
The Eastern Magistrates’ Court in Hong Kong heard that Raymond Wong, 80, became aware of price‑sensitive and non‑public information in 2017 while negotiations were underway for him to sell his stake in Pegasus Entertainment Holdings, which he co-founded with his son Edmond in 2009.
The non‑public information included the signing of a memorandum of understanding and the receipt of HK$10 million as earnest money – a form of deposit – from a potential buyer.
Raymond transferred a total of HK$2 million to Jenny after he received the earnest money on Aug 25, 2017, with his sister beginning to buy shares of Pegasus on the same day.
The movie producer also sent multiple WhatsApp messages to Jenny from Aug 30, 2017, advising her on the timing and the price to buy Pegasus shares at, according to SFC’s statement.
As a result, between Aug 25 and Oct 17 in 2017, Jenny bought over nine million Pegasus shares at prices significantly lower than what the market share price was after the deal was announced on Oct 25, 2017. The majority of the Pegasus shares purchased by Jenny were paid for with funds transferred to her by her brother.
The court also heard that Jenny made a profit of more than HK$1 million from the trading. Pegasus was renamed Transmit Entertainment in 2018.
The court adjourned the case until June 9 for sentencing, with Wong currently out on bail.
A veteran in Hong Kong cinema, Raymond is famous for acting in movies such as the Happy Ghost series (1984 to 2011) and All’s Well, Ends Well series (1992 to 2020). He has stepped back from movie production in recent years and has his own YouTube channel in which he showcased his singing talent. - The Straits Times/ANN
