Hong Kong Cracks Down on Insider Trading: Segantii Capital, Perella Weinberg Banker, and Former Merrill Lynch Banker Under Scrutiny
High-Profile Insider Trading Cases in Hong Kong
Hong Kong has intensified its crackdown on insider trading with a series of high-profile cases against various individuals and entities. This article provides an overview of recent insider trading cases in Hong Kong involving Segantii Capital Management, former Merrill Lynch banker Daniel LaRocca, Perella Weinberg banker Simon Sadler, and others.
Segantii Capital Management: Sadler and LaRocca’s Insider Trading Allegations
Dates: Friday, May 3, 2024 - Thursday, May 2, 2024
The Securities and Futures Commission (SFC) launched insider trading prosecutions against Segantii Capital, Simon Sadler, and Daniel LaRocca, accusing the defendants of making more than $17 million in illicit profits between 2021 and 2023.
- Segantii Capital Management: A Hong Kong-based hedge fund founded by Simon Sadler and Daniel LaRocca
- Alleged Offenses: Insider trading between July 2021 and February 2023
- Accused of Making: More than $17 million in illicit profits
Prison Sentence for Former Communications Adviser in “Breakfast Trust” Trial
Date: Friday, April 26, 2024
A former communications adviser was sentenced to three years in prison for insider trading in the “breakfast trust” trial. The defendant, who made over €14mn in profit, traded on tips from Perella Weinberg banker Rakesh Kotecha.
Executives and Insider Trading Policies: A Warning from Lex Columnist James Turley
Date: Monday, April 22, 2024
In the wake of high-profile insider trading cases, Lex columnist James Turley warns that executives may need to re-evaluate their companies’ trading policies.
British Billionaire Joe Lewis Avoids Prison Sentence in Insider Trading Case
Date: Thursday, April 4, 2024
British billionaire Joe Lewis avoided a US prison sentence in an insider trading case. He pleaded guilty to tipping off friends, pilots, and a girlfriend about non-public information.
Insider Trading: Germany’s Harsh Rules and Unintended Consequences
Date: Thursday, March 21, 2024
An opinion piece by Olaf Storbeck in Inside Business discusses how Germany’s harsh insider trading rules might be backfiring for society and markets.
Goldman Sachs Insider-Trading Conviction: A Wake-Up Call for the City of London
Date: Sunday, February 25, 2024
The Financial Conduct Authority (FCA) in the UK announced a Goldman Sachs insider-trading conviction, labeling it a “wake-up call” for the City of London.
Insider Trading by BP Employee’s Husband: $1.7mn Profit
Date: Friday, February 23, 2024
A BP employee’s husband pleaded guilty to insider trading in connection with an oil major’s takeover. The man made over $1.7mn from trading on inside information he obtained by overhearing deal calls while his wife worked from home.
Former Goldman Sachs Analyst Mohammed Zina’s Insider Trading and Fraud Allegations
Dates: Wednesday, February 7, 2024 - Tuesday, December 5, 2023
A former Goldman Sachs analyst, Mohammed Zina, was found guilty of insider trading and fraud.
- Mohammed Zina: Former Goldman Sachs analyst
- Alleged Offenses: Insider trading and fraud
- Details: Conviction from February 2024; trial from December 2023
Perella Weinberg Banker Rakesh Kotecha’s Role in Insider Trading
Dates: Wednesday, February 7, 2024 - Wednesday, January 24, 2024
Prosecutors claimed that former Perella Weinberg banker Rakesh Kotecha shared inside information for 15 years before his untimely death in 2023.
- Rakesh Kotecha: Former Perella Weinberg banker
- Alleged Offenses: Sharing inside information for 15 years
- Details: Died in 2023; charges announced in 2024
other Insider Trading Cases
Date: Sunday, February 4, 2024
A former Clifford Chance lawyer was acquitted in an FCA insider trading trial.
Date: Wednesday, January 31, 2024
A former Perella Weinberg banker, Rakesh Kotecha, died days after police raided his office and home in London in connection with a suspected insider trading case.
Date: Wednesday, January 24, 2024
British billionaire Joe Lewis pleaded guilty to insider trading charges in a US court.
Date: Friday, January 12, 2024
Morgan Stanley reached a $249mn settlement with the SEC and agreed to a non-prosecution deal over the leak of confidential information ahead of bulk share sales.
Date: Tuesday, December 6, 2023
Investigative journalists cast doubt on allegations of insider trading by Hamas members.
Date: Monday, December 5, 2023
Ex-Goldman analyst Mohammed Zina and his brother are on trial for insider dealing and fraud.
Date: Monday, December 4, 2023
An ex-Goldman analyst who was aware of insider dealing “perils” testified in court against his brother.
Date: Thursday, November 30, 2023
Ex-Goldman analyst Suhail Zina and his brother, Mohammed, went on trial for insider dealing.
Date: Monday, November 1, 2023
A former Goldman Sachs banker was sentenced to three years for insider trading with his squash partner.
Date: Monday, October 2, 2023
Frankfurt prosecutors charged a German citizen with insider trading.
Date: Thursday, September 28, 2023
US prosecutors charged a former Goldman Sachs and Blackstone employee, Anthony Viggiano, with insider trading.
Date: Monday, September 18, 2023
Lyft Inc settled a probe into Icahn’s stake sale ahead of its IPO, paying $10mn for failing to disclose the director’s role in the deal.