The Hong Kong Securities and Futures Commission secured a custodial sentence in its criminal insider dealing prosecution against movie producer Wong Pak Ming. The West Kowloon Magistrates’ Court sentenced Wong to five months’ imprisonment after convicting him of misusing inside information obtained as chairman and controlling shareholder of Pegasus Entertainment Holdings Limited and advising his sister through WhatsApp messages on when and at what price to trade before the information was disclosed to the market. The case concerned 2017 negotiations for Wong to dispose of his controlling stake in Pegasus, during which he knew price-sensitive, non-public information about the transaction. After receiving earnest money from the buyer on 25 August 2017, Wong transferred funds to his sister, who bought more than nine million Pegasus shares between 25 August and 17 October 2017 at prices below the market level that followed the deal’s announcement on 25 October 2017. The court also ordered Wong to pay a HKD 99,720 fine, equal to the profits realised by his sister, and HKD 374,305.48 in the SFC’s investigation costs. Wong was granted bail pending appeal, subject to HKD 200,000 cash bail, residence notification requirements and a requirement to inform the SFC 24 hours before leaving Hong Kong.

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