Hong Kong Regulators Sue Tiger Asia

Jul 12 2013 | 3:06am ET

Having won the right to sue the defunct Tiger Asia Management for insider-trading, Hong Kong's Securities and Futures Commission is exercising it.

The SFC brought fraud charges against the New York-based firm, founder Bill Hwang and executives Raymond Park and William Tomita. The defendants are charged with trading on confidential information about two Chinese banks in 2008 and 2009, allegations that parallel those Tiger Asia pleaded guilty to in the U.S. in December.

Tiger Asia closed last August.

The SFC's case has been a long time in coming: The regulator first brought charges in 2009, but the hedge fund successfully argued that the SFC could not sue it or seek to have its principals barred without a tribunal or criminal court filing. Since Tiger Asia was based in New York and had no physical presence in Hong Kong, a criminal case was all-but-impossible to bring.

But Hong Kong's highest court ruled in May that the SFC was permitted to file the charges even without a tribunal or criminal-court finding. The city's Market Misconduct Tribunal will now determine whether Tiger Asia and its executives will be barred from trading, as well as potential monetary penalties.


In Depth

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...