Dow Jones insider trading alleged
The Securities and Exchange Commission on Tuesday accused a Hong Kong couple of illegally trading on inside information when they bought $15 million of Dow Jones & Co. stock before News Corp.’s bid for the media company became public.
The agency sued Kan King Wong and Charlotte Ka On Wong Leung in U.S. District Court in New York. The suit did not explain how the couple would have obtained inside information.
The defendants could not be reached for comment.
After the takeover bid was disclosed, Dow Jones’ stock price rose 58%, causing the couple’s Merrill Lynch & Co. account in Hong Kong to grow to $23 million for a profit of $8 million, according to the SEC suit.
The suit seeks a court order requiring the couple to give up all profit and pay civil penalties.
Federal and state authorities have said they are investigating suspicious trading in options to buy Dow Jones stock before the bid was publicly known.
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