SEC files lawsuit against couple for insider trading of Dow Jones
Today the Securities and Exchange Commission filed a lawuit against Kan King Wong and his wife Charlotte Ka On Wong Leung, both of Hong Kong. The SEC lawsuit alleges that between April 13 and April 30, they bought 415,000 shares of Dow Jones for about $15 million. After the announcement of News Corp’s takeover bid for Dow Jones, the stock price went up more than 50%, creating a potetntial profit of $8 million for Wong and Leung.
The SEC says their trades were highly suspicious. The couple owns mostly fixed income securities, but started buying Dow Jones in April. They started purchasing shares, and eventually used margin loans and wire transfers to continue buying shares. On May 4, they contacted their broker to sell the Dow Jones stock. The brokerage firm contacted the SEC, and the SEC has frozen the assets in the trading account.
There has also been word of an investigation into suspicious options trading of Dow Jones just prior to the announcement of the takeover bid.
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