Court finds trio engaged in insider dealing in TeleEye (8051) shares

Further information

Judgment

Court finds trio engaged in insider dealing in TeleEye shares

Issue date: 2021-11-10 19:08:24

The Court of First Instance has found Ms Yik Fong Fong and her two associates, Ms Wei Juan and Mr Huang Yi, engaged in insider dealing in the shares of TeleEye Holdings Limited (TeleEye) in 2016 involving a total profit of $12.9 million (Notes 1 & 2).

The Securities and Futures Commission (SFC) commenced civil proceedings against the trio in September 2016 under section 213 of the Securities and Futures Ordinance. In January 2017, the SFC obtained interim injunction orders from the court to freeze the assets of Yik of up to $25.9 million while Wei and Huang were ordered to pay into the court a total of $12.9 million (Note 3).

The SFC investigation found that:

Yik left Hong Kong shortly after the SFC had commenced its investigation. Wei and Huang currently live in mainland China and attended the court hearing via video conferencing.

In delivering the ruling, the court is satisfied that it is desirable to grant the orders sought by the SFC to remove the illicit profits involved in the impugned transactions. The court also directs a further hearing be held with the SFC and the defendants to determine orders of relief sought by the SFC. 

The SFC’s Executive Director of Enforcement, Mr Thomas Atkinson, said: “The court’s findings confirm the SFC’s allegations made at the outset of the proceedings. Investors are unable to detect, or avoid transacting with, wrongdoers in the market and so they are highly vulnerable to this kind of the misconduct. It is only right and fair that these transactions should be restored so the innocent investors may be put back, as closely as possible, to the positions they were in before the transactions took place.”

The SFC appreciates the assistance of the China Securities Regulatory Commission in this case.

End

Notes:

  1. The findings were made by the Court of First Instance on 9 November 2021. A copy of the judgment is available on the Judiciary website.
  2. TeleEye was listed on the Stock Exchange of Hong Kong Limited in 2001. It is currently known as CircuTech International Holdings Limited. Yik was an executive director and chief executive officer of a Hong Kong listed company, Chinese Energy Holdings Limited, until 12 August 2016. Wei is Yik’s niece and married to Huang. Huang reported himself to be an investment consultant of a securities investment firm in China.  
  3. Please also see the SFC’s press releases dated 3 June 2016 and 3 February 2017.
  4. On 12 April 2016, trading in the shares of TeleEye was suspended. On 14 April 2016, TeleEye announced a takeover by Foxconn (Far East) Ltd., a wholly owned subsidiary of Taiwan listed company, Hon Hai Precision Industry Co Ltd., which acquired a 50.07% stake of TeleEye. The takeover also involved an unconditional cash offer at $0.55. Upon resumption of trading on 15 April 2016, the share price surged 71% to close at $0.99 from the pre-suspension close.
  5. The trading accounts of Wei and Huang were held with Kingsway Financial Services Group Limited, China Everbright Securities (HK) Limited and UOB Kay Hian (Hong Kong) Limited.
News captured as of:2021-11-10 19:08:22

Source: SFC

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