An insider dealing probe dusted in ’16
View(s):Two insider dealing probes began in 2016 one of which has been completed with the report pending while the other investigation was at the final stage by the end of the year, the Securities and Exchange Commission (SEC) annual report for 2016, said without disclosing any names.
It noted that the report of another investigation, which commenced in a previous year, was being completed as of end 2016. In 2014, based on the findings of an investigation into market/price manipulation, legal action was instituted by the SEC against two people and it was referred to the AG’s Department for legal action and is pending, the report said.
The report noted that probes into certain trades executed in the shares of two listed companies were in progress at the end of 2016. Also an investigation into market/price manipulation and/or insider dealing was referred to the AG’s Department for legal action against three persons in 2014 and the matter was pending there as at the end of 2016, it said.
“Another three investigations were pending at the end of the year under review and a report on one of those investigations was being compiled and the other two investigations were in progress,” it added saying that the probe into ‘price/market manipulation and/or insider dealing and/or front running’ was completed and the report was being compiled while the other investigation was at the final stage as at 2016.
One investigation under this same category was referred to the CID in order to ascertain any ‘misappropriating of funds’ during 2016 and the other investigation was nearing its end as at the end of the year, the report said noting that a formal opinion regarding one investigation on front-running and/or insider dealing was solicited from the AG and the said formal opinion was pending as at December 2016.
An investigation pertaining to irregular activities by stock broking firms was completed and SEC decided to take enforcement action based on the findings, the report said noting that in 2015, the Surveillance and Investigations Committee of SEC directed the Investigations Division to carry further investigations on another such case and further investigation work was at its final stage by the end of 2016.