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SFC commences insider dealing prosecution against Segantii Capital Management and its chief investment officer

Issue date: 2024-05-02 16:58:00

The Securities and Futures Commission (SFC) has commenced criminal proceedings against Segantii Capital Management Limited (Segantii), its director and chief investment officer Mr Simon Sadler, and former trader Mr Daniel La Rocca for the offence of insider dealing in the shares of a company listed on the Stock Exchange of Hong Kong Limited prior to a block trade in June 2017 (Notes 1 to 3).

No plea was taken when the defendants appeared at the Eastern Magistrates’ Court this morning and the case was adjourned to 12 June 2024.

Sadler and La Rocca were released pending the next hearing on the following conditions: (i) cash bail of $1,000,000 and $500,000 respectively; (ii) they shall inform the SFC 24 hours before leaving Hong Kong, and to provide the SFC with full itinerary with contact details; (iii) they shall reside at the home address provided to the SFC and inform the SFC 48 hours in advance of any change of address and/or contact details whilst abroad; and (iv) they shall not contact either directly or indirectly any prosecution witnesses.

No further comment will be made now that legal proceedings have commenced.

End

Notes:

1. Segantii is a hedge fund management firm licensed under the Securities and Futures Ordinance (SFO) to carry on Type 9 regulated activities.
2. Section 291 of the SFO prohibits insider dealing of listed securities of a listed corporation or their derivatives.
3. A block trade is a purchase or sale of a large amount of shares in a single transaction. The buy and sell orders are privately negotiated between the buyer(s) and seller(s) through investment bank(s) and executed off-market to minimise price impact and avoid unwanted signalling to the public investors of the large-sized transaction.

News captured as of:2024-05-02 16:58:01

Source: SFC