Chinese physicist settles U.S. SEC insider charges over tech buyout

© Reuters. To match Special Report SEC/INVESTIGATIONS

By Jonathan Stempel (Reuters) – A Chinese optical physicist who did consulting work for two Chinese personal equity firms agreed to pay nearly $757,000 to settle U.S. Securities and Exchange Commission insider trading charges over a proposed buyout of a Silicon Valley business, the regulatory authority said on Thursday. Guolin Ma was accused of purchasing 39,373 shares of OmniVision Technologies Inc in the spring of 2014 based upon confidential information he learned from the 2 companies, as they pursued a takeover of the Santa Clara, California-based maker of optical semiconductor gadgets utilized in mobile phones and webcams. OmniVision shares rose 15 percent after the Aug. 14, 2014, statement of a proposed buyout by an investor group consisting of one of the companies, Hua Capital Management Ltd, and state-owned Shanghai Pudong Science and Technology Financial investment Co. The SEC said Ma produced $367,387 of latent revenue on his OmniVision stake following the announcement. Without admitting misbehavior, Ma agreed to forfeit that amount and pay a fine in the very same amount, plus $21,986 of interest, the SEC said. The settlement requires court approval. It is unclear whether Ma, who is in his late 50s, employed a legal representative for his defense. He could not immediately be found for comment. “Ma breached a duty of trust and confidence to the personal equity companies when he purchased countless shares of OmniVision stock while aware of the impending deal,” Joseph Sansone, co-chief of the SEC Enforcement Division’s market abuse system, said in a statement. “It was a pricey mistake.” OmniVision eventually agreed in April 2015 to be gotten by a consortium consisting of Hua Capital, CITIC Capital Holdings Ltd and GoldStone Investment Co for about $1.9 billion. The merger closed in January. Disclaimer: Blend Media want to remind you that the data contained in this website is not necessarily real-time nor precise. All CFDs (stocks, indexes, futures) and Forex prices are not offered by exchanges but rather by market makers, and so costs may not be accurate and may differ from the actual market price, meaning costs are a sign and not necessary for trading functions. Therefore Fusion Media does n`t bear any obligation for any trading losses you might sustain as a result of utilizing this information. Blend Media or anybody involved with Blend Media will decline any liability for loss or damage as an outcome of dependence on the information including information, quotes, charts and buy/sell signals contained within this website. Please be fully notified relating to the risks and expenses related to trading the monetary markets, it is one of the riskiest financial investment forms possible.

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