Tiger Asia Seeks End To Hong Kong Regulator's Lawsuit

Jun 1 2011 | 10:45am ET

Tiger Asia Management has asked a Hong Kong court to dismiss a regulatory effort to bar it from trading in the city.

Hong Kong's Securities and Futures Commission last year moved to ban the hedge fund from trading after accusing it of insider-trading for the second time in less than a year. But Tiger said it was unfair to bring civil charges in a criminal case, Bloomberg News reports.

"It is not appropriate for a civil court to determine what is essentially a criminal offense," Tiger Asia's lawyer, Charles Sussex said at a hearing today.

The SFC shot back that it would be happy to bring criminal charges—but it can't.

"This is a blatant case of insider dealing that happened on more than one occasion by the same outfit," Simon Westbrook, representing the regulator, said. "Unfortunately all of the defendants are based in New York. None of them are within the jurisdiction."

If they do show up in Hong Kong, three Tiger Asia executives—founder Bill Hwang, head of trading Raymond Park and William Tomita, who supports trading activities—could be prosecuted criminally, Westbrook said.

In addition to the trading ban, the SFC wants HK$38.5 million (US$5 million) in assets frozen, naming the firm and the three executives.

According to the SFC, Tiger Asia, on Hwang's orders, made a pair of illegal trades after learning confidential information about two placements of Bank of China shares in late 2008 and early 2009. Those allegations followed 2009 charges that Tiger Asia had illegally traded China Construction Bank Corp. shares.

Last year, Tiger was hit with a Securities and Exchange Commission subpoena, which it said stems from the Hong Kong probe.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.