A former investment banker and four other defendants were found guilty of insider dealing by the District Court last month after the first indictable trial for such offence under the Securities and Futures Ordinance (SFO). Ma Hon Yeung, a former Vice-President of BNP Paribas Peregrine Capital Ltd (now known as BNP Paribas Capital (Asia Pacific) Ltd), his girlfriend and three of his relatives were convicted on a total of 12 charges of insider dealing under section 291 of the SFO following an investigation by the Securities and Futures Commission (SFC).rnThe court heard that in his position at BNP Paribas, Mr Ma was working on a proposed privatisation of Egana Jewellery ￡t Pearls Ltd which he knew was confidential, price-sensitive information. Within days of becoming privy to the proposed deal, Ma tipped off his girlfriend as well as the three family members who all bought shares in Egana prior to the deal being announcedrnin July 2006. 'This case, being the first indictable trial for insider dealing, is a landmark decision,' said Mark Steward, the SFC's Executive Director of Enforcement. 'Over the last two years, the SFC has stepped up prosecutions against insider dealing and market misconduct. This is the second of five insider dealing prosecutions and we will continue to use all our remedies including more criminal prosecutions, where appropriate, to tackle the unfairness of insider dealing,' he added.
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