The U.S. Securities and Exchange Commission (SEC) said on Friday that it obtained an emergency court order to have the assets frozen of traders allegedly accused of trading on inside information ahead of a deal between China's CNOOC and Nexen Inc, a Canadian oil company.
The SEC alleged in a complaint that Hong Kong-based firm Well Advantage and other unknown traders stockpiled shares of Nexen stock based on confidential information about the deal in the days leading up to the announcement that China National Offshore Oil Corporation (CNOOC) agreed to acquire Nexen.
The SEC sought the emergency action by alleging those traders using trading accounts in Hong Kong and Singapore to reap more than 13 million U.S. dollars in illegal profits. The action took place within less than 24 hours after Well Advantage placed an order to liquidate its entire position in Nexen.
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