Tags: Chinese bank stocks, Hedge Funds, insider-trading, lessons, Robert Khuzami, Tiger Asia, wire fraud
Earlier today, Bill Hwang, the founder of the Tiger Cub’s Asia-based branch, Tiger Asia, pleaded guilty to one count of wire fraud and agreed to fork over $44 million to make allegations by the SEC of insider trading in Chinese bank stocks go away. According to Hwang, his firm “regrets the actions for which is accepts responsibility today and is grateful that this matter is now resolved.” According to SEC director of enforcement Robert Khuzami, who we would love to consider a side job writing fables for children about foxes who trade on unreleased information about clinical trials of Alzheimer’s drugs and take advantage of innocent hens,* Hwang was a very bad boy and should serve as a cautionary tale for anyone thinking about breaking the law.
“Hwang today learned the painful lesson that illegal offshore trading is not off-limits from U.S. law enforcement, and tomorrow’s would-be securities law violators would be well-advised to heed this warning,” said Robert Khuzami, director of the SEC’s Division of Enforcement.
Fund Pleads Guilty to Wire-Fraud Charge [WSJ]
*It could be a whole series, and not just about crimes of the financial variety. It’s possible he’d get so enamored with the details of obeying the law that the story would suffer slightly (“Franklin Fox and Gary Grasshopper ran to the cave to seek cover from the evil monster. But before they officially entered, they checked with local authorities to make sure they weren’t trespassing. ‘We need to make sure this isn’t private property,’ Gary said, out of breath. ‘You know I wouldn’t last a day in the big house.’”) but that’d be part of their charm.