Four of the five people engaged in insider dealing concerning Siu Fung Ceramics Holdings have been ordered to pay the Government a penalty, inquiry expenses and the profit they gained.

The Insider Dealing Tribunal concluded Siegfried Lee, Daniel Chan, Lisa Lam, William Lam and Henry Tai committed insider dealing on March 18.

The tribunal conducted hearings on May 18, 19 and 25, to deal with issues relating to the profits gained or losses avoided, financial penalties, applications in respect of costs and the orders to be made.

According to the tribunal's orders, the five cannot, without leave of the Court of First Instance, be a director, liquidator, receiver or a manager of the property of both a listed and a private company or in any way whether directly or indirectly be concerned or take part in the management of both a listed and a private company for up to five years.

Penalties meted out

All of them, except Tai, have to pay the Government up to $69,870,530, the profit they gained in the insider dealing. They were also ordered to pay penalties of up to $139,741,060, and the tribunal ordered them to pay inquiry expenses of up to $9,185,356.

A report on penalty and consequential orders of the tribunal has been submitted to the Financial Secretary and distributed to all concerned parties. For details of the tribunal's orders click here.

The tribunal will conduct further inquiries on whether or not it can and should identify either the Search Investment Group or Mordale Profits Ltd (or both firms) as having engaged in insider dealing when the Search Investment Group sold its portfolio of Siu Fung shares which were held by its subsidiary Mordale Profits Ltd and if each or both companies did, what orders should be made against them.