The West Kowloon Magistrates’ Court today sentenced movie producer Mr Wong Pak Ming to five months of imprisonment, following his conviction of insider dealing in the shares of Pegasus Entertainment Holdings Limited in a criminal prosecution brought by the Securities and Futures Commission (SFC).

Following a 16-day trial, Wong was earlier convicted of deliberately misusing inside information obtained in his capacity as chairman and controlling shareholder of Pegasus, and advising his sister via multiple WhatsApp messages on the timing and the price to trade in the company’s shares before that information was disclosed to the market.

He was ordered to pay a fine of $99,720, equivalent to the realised profits his sister earned from her dealing in Pegasus shares. He was also ordered to pay the SFC’s investigation costs of $374,305.48.

The Court heard that, in 2017, while negotiations were underway for Wong to dispose of his controlling stake in Pegasus, he had knowledge of price-sensitive and non-public information about the transaction.

On 25 August 2017, upon receipt of earnest money from the buyer, Wong began transferring funds to his sister who started buying Pegasus shares on the same day until 17 October 2017. Consequently, Wong’s sister purchased over nine million Pegasus shares, funded largely by monies Wong had transferred to her, at prices well below Pegasus’ ensuing market share price after the deal was announced on 25 October 2017.

The Court granted Wong bail pending his appeal subject to the following conditions: (i) cash bail of $200,000; (ii) he shall reside at the home address provided and inform the Police prior to any change of residence; and (iii) he shall inform the SFC 24 hours prior to leaving Hong Kong.