The Eastern Magistrates’ Courts today sentenced Mr Choi Chun Wai, a former Vice President of Computershare Hong Kong Investor Services Limited to two months of imprisonment after he was convicted of insider dealing in the shares of ENM Holdings Limited.

Choi was ordered to pay a fine of $289,500, which is equivalent to the losses he had avoided when dealing in the ENM shares. The Court also ordered him to pay the Securities and Futures Commission (SFC) investigation costs of $120,407.

The Court heard that whilst employed as a vice president of Corporate Services at Computershare, Choi received inside information about ENM’s privatisation and sold all his 1,500,000 ENM shares on 25 September 2023 ahead of ENM’s announcement of the lapse of the privatisation. Consequently, Choi was able to avoid a loss of around $289,500.

In sentencing Choi, the Court noted that although he showed remorse for his misconduct, insider dealing is a serious offence, and immediate custodial sentence is appropriate in this case.

The SFC’s Executive Director of Enforcement, Mr Michael Duignan, said:

“The conviction underscores the SFC’s commitment to tackle insider dealing and enhance the integrity of Hong Kong’s financial markets. The immediate jail sentence by the Court serves as a strong deterrent. The misuse of non-public information for personal gain, particularly market professionals in a position of trust, is unacceptable and will have serious consequences. The SFC will continue to take robust enforcement action to protect investors and uphold a level playing field for all market participants.”