Ex-Dow Jones board member to pay $8.1M

David Li and two others will pay $24 million to settle insider trading charges with the SEC.

Former Dow Jones & Co. board member David Li and two others will pay $24 million to settle insider trading charges with the Securities and Exchange Commission.
The complaint, which was filed in the U.S. District Court for the Southern District of New York, alleges that Mr. Li illegally tipped off his close friend Michael Leung about an unsolicited $5 billion takeover bid by News Corp. for the New York-based financial news company last Spring.
The complaint also alleges that Mr. Leung, with the help of his daughter Charlotte Ka On Wong Leung and son-in-law Kan King Wong, purchased approximately $15 million worth of Dow Jones securities.
As part of the settlement, Mr. Li, who is the chairman and chief executive of the Bank of East Asia, will pay a $8.1 million fine.
Mr. Leung was ordered to pay an $8.1 million fine and $8.1 million in restitution.
Mr. Wong was ordered to pay a $40,000 fine and $40,000 in restitution.
Each of the men agreed to the settlement without admitting or denying any wrongdoing.
“This case makes clear that the SEC will move fast, and decisively, not only in the United States but around the world to protect investors from insider dealings and threats to fair and open markets,” SEC Chairman Christopher Cox said, according to a statement.