Hong Kong Firm to Pay $14 Million to Settle Insider Case
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Well Advantage Limited, a Hong Kong-based firm controlled by billionaire Zhang Zhi Rong, agreed to pay $14 million to resolve U.S. regulatory claims that it profited from illegal trades before Cnooc Ltd.’s announcement that it would buy Nexen Inc.
The settlement, which still must be approved by U.S. Judge Richard J. Sullivan in Manhattan, amounts to double the illicit profits Well Advantage is alleged to have made when it stockpiled shares of Nexen based on confidential knowledge of the pending deal, the Securities and Exchange Commission said in a statement yesterday.