Clifford Chance

Tiger Asia Admits Insider Trading in U.S. Civil and Criminal proceedings

17 December 2012

Tiger Asia Management LLC ("Tiger Asia"), the international hedge fund which specialises in Asian-traded equities, has, through its founder and manager, S.K. "Bill" Hwang (Hwang), admitted to illegally using inside information to trade on Chinese bank stocks and has agreed to settle separate civil proceedings filed by the U.S. Securities and Exchange Commission ("SEC") on December 13th 2012 in a federal court in New Jersey, USA. The alleged insider trading took place in Hong Kong. Disgorgement and pre-judgment interest penalties of more than US$60 million were agreed to be paid to U.S. federal authorities to settle the charges, comprising US$44 million to be paid by Tiger Asia, Hwang, Tiger Asia Partners LLC and  Raymond Y.H. Park ("Park"), former head trader of Tiger Asia Fund and the Tiger Overseas Fund, as well as forfeiture of $16 million by Tiger Asia. Tiger Asia was also placed on probation for a year.

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