Solicitor in alleged CASH Financial Services insider dealing acquitted
The acquittal comes as the witnesses’ evidence were found to be conflicting.
The Eastern Magistrates’ Court has acquitted practising solicitor Leung Pak Keung of five charges of alleged insider dealing in the shares of CASH Financial Services Group Limited (CFSG).
The Securities and Futures Commission (SFC) said in a statement Magistrate Winnie Lau found that the witnesses gave conflicting evidence.
It was also not demonstrated beyond reasonable doubt that Leung knew the subject information was inside information.
The SFC noted it was reviewing the court’s decision. The criminal proceeding over Leung’s alleged insider dealing started in April 2019.
The Commission had alleged that between 18 December 2014 and 2 January 2015, Leung purchased 2.1m CFSG shares whilst in possession of CFSG-specific, non-public, and price sensitive information.
Leung was then working as a legal adviser to Oceanwide Holdings (Hong Kong) Co. Limited, in respect of its proposed acquisition of a 44% stake in CFSG.
It was also alleged that Leung disposed of all his CFSG shares, making a profit of $45,300 after the announcement of the proposed corporate acquisition on 12 January 2015.