Insider scandal
NZPA-AP New York A former junior securities analyst has pleaded guilty to the first criminal charges stemming from what the American Government has called the second-biggest insider trading scandal in Wall Street history.
Stephen Sui-kuan Wang, jun., aged 24, a one-time trainee of the prominent brokerage, Morgan Stanley and Company, also pleaded guilty to a single charge in connection with his role in a previously undisclosed insider-trad- ~
ing scheme. If convicted of all three counts, Wang faces a maximum sentence of 15
years in prison and $U5750,000 ($NZ1,177,500) in fines.
The charges were announced by a United States Attorney, Mr Rudolph Giuliani, who said that from June, 1987, to July, 1988, Wang participated in an insider trading scheme with a Taiwanese-born businessman, Fred Lee. The scheme involved trading in the securities of more than 14 companies in mergers and take-overs Lee, who has resided in Taiwan, Hong Kong, and the United States, has been said by the Securities and Exchange Commission to have traded stocks on the tips provided by Wang and netted at least SUSI9> million
(SNZ3OM) in illicit profits. He allegedly shared at least SUS2OO,OOO ($NZ314,000) with Wang.
The SEC has frozen the assets of both men and sought repayment of the SUSI9M plus treble damages for a total of SUS76M. That would be the second-largest amount seized by the SEC in an insider trading case since Ivan Boesky surrendered SUSIOOM nearly two years, ago.
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Press, 12 September 1988, Page 20
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239Insider scandal Press, 12 September 1988, Page 20
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