Hong Kong actor and film producer Raymond Wong Pak Ming was sentenced to five months in jail for insider trading linked to share transactions by his sister Jenny Wong in 2017 [1, 2]. The court fined Wong roughly HK$99,000 to HK$99,720, representing profits his sister made from trading shares in Pegasus Entertainment Holdings, the company Wong chaired and controlled [1, 2].
Wong was also ordered to pay legal and investigation costs estimated between HK$370,000 and HK$374,305 to the Securities and Futures Commission (SFC) [1, 2]. The insider trading occurred over a period from August 25 to October 17, 2017, involving shares of Pegasus, also called Transmit Entertainment according to some sources [1, 2].
During this time, Wong advised and transferred funds to his sister to purchase over 9 million Pegasus shares using non-public, price-sensitive information about a pending sale and payment of HK$10 million in earnest money by a potential buyer [1, 2]. Magistrate Ko Wai-hung said, "Even [Wong] has a good background and contributed his whole life to filmmaking … this, however, would not constitute a special reason [for the court] to hand down a suspended sentence or community service order," rejecting any leniency despite Wong’s industry contributions [2].
Michael Duignan, executive director of enforcement at the SFC, emphasized the case’s seriousness: "This case highlights the serious consequence of abusing inside information for personal gain. The custodial sentence handed down by the Court underscores that insider dealing can result in immediate imprisonment." [1]
Wong was granted bail pending appeal and will not have to begin serving his sentence immediately [2]. The sentencing took place June 9, 2023, at the West Kowloon Magistrates’ Court [1], and bail was granted four days later on June 13 [2].
The court proceedings clarified the use of non-public information in influencing Wong’s sister’s trades in Pegasus, which some sources named as Pegasus Entertainment Holdings while others used the name Transmit Entertainment, reflecting the company’s former name [1, 2].
Raymond Wong’s case marks a clear enforcement of insider trading laws in Hong Kong. He is expected to file an appeal as he remains free on bail pending the court’s review [2].
