Banker near settlement in DJ insider trading case-FT
HONG KONG, Jan 28 (Reuters) - Hong Kong banker David Li has reached a tentative agreement with U.S. regulators to pay more than $8 million to settle an insider trading case linked to News Corp's purchase last year of Dow Jones & Co Inc, the Financial Times said on its Web site.
Li, chairman and CEO of Bank of East Asia (0023.HK), was travelling on Monday and not available for comment, his office said. A Bank of East Asia spokeswoman said the lender had no comment on the FT report.
Li faced potential civil charges in an insider trading investigation by the Securities and Exchange Commission linked to News Corp's NWSa.N US$5.6 billion acquisition of U.S. media firm Dow Jones, where Li was a board member.
The Financial Times report, citing unnamed people familiar with talks between Li and the SEC, said Li would neither admit nor deny wrongdoing under terms of the potential settlement. It said negotiations were continuing and that details could change before any deal is approved by the SEC.
The SEC was investigating unusual trading in Dow Jones stock and options in the weeks before the company disclosed the $60 per share buyout offer from Rupert Murdoch's News Corp on May 1 last year.
The SEC said on May 8 that a Hong Kong-based couple, Kin Kang Wong and Charlotte Ka On Wong Leung, had "engaged in widespread and unlawful trading activity" that put them in a position to make an estimated $8.1 million profit on Dow Jones shares.
The Wall Street Journal reported last year that the SEC was expected to pursue a link between the Hong Kong couple and Li. Li and Charlotte Leung's father, Michael Leung, share a history of business and social dealings, media have reported.
In July, Li issued a statement denying any wrongdoing in the matter.
If a deal is not reached, the SEC could file a civil fraud complaint against Li, the Financial Times reported. (Reporting by Tony Munroe; Editing by Lincoln Feast) (tony.munroe@reuters.com; Reuters Messaging: tony.munroe.reuters.com@reuters.net; +852 2843 6358, Fax +852 2845 0636))
