HK movie producer Raymond Wong sentenced to five months in prison over insider dealing

Well-known movie producer and actor Raymond Wong Pak-ming has been sentenced to five months in prison and fined about HK$99,720 after being convicted of sharing insider information with his sister to trade shares of Pegasus Entertainment.

The 80-year-old veteran filmmaker appeared before the West Kowloon Magistrates’ Courts on Tuesday. He is also ordered to pay HK$374,305.48 for the Securities and Futures Commission's investigation costs.

Wong was granted bail pending appeal.

In sentencing, the judge acknowledged Wong's exceptional contributions to the Hong Kong film industry, his old age, which posed a low risk of reoffending, as well as the relatively modest financial gains involved. 

However, the case has damaged public confidence in the city's securities market, the judge noted, adding that even though the defendant has a positive background and he got severe reputational damage and psychological stress caused by this case, it could not constitute grounds for a suspended sentence or a community service order.

The court heard that in 2017, when a third party put forward an acquisition proposal for Pegasus Entertainment, Wong, then the company’s chairman and controlling shareholder, gave HK$2 million to his younger sister and instructed her to buy the shares. His sister subsequently netted over HK$1 million in profits.

Wong is charged with deliberate misuse of inside information acquired through his role as chairman and controlling shareholder of Pegasus Entertainment and his decision to advise his sister to trade the company's shares before the inside information was disclosed to the market.

Noting Wong’s sentencing, Michael Duignan, the SFC’s Executive Director of Enforcement, said: “This case highlights the serious consequence of abusing inside information for personal gain. The custodial sentence handed down by the Court underscores that insider dealing can result in immediate imprisonment."

The outcome of this case sends a clear and unequivocal message to the public at large that wrongdoers exploiting inside information will face severe consequences and public accountability, regardless of their status or reputation, he added.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓