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SEC settles insider case
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July 26, 1999: 2:11 p.m. ET
Company, Hong Kong resident to pay $2M in Omnipoint acquisition charge
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NEW YORK (CNNfn) - A Hong Kong resident and a company -- charged with insider trading connected to last month's acquisition of Omnipoint Corp. by VoiceStream Wireless Corp. -- have agreed to pay more than $2 million to settle the case, officials said Monday.
Paul Gerlach, a Securities and Exchange Commission spokesman, said the investigation is continuing. He declined to elaborate.
The SEC filed a civil complaint against Samson Hui and a company he partially owns, Rich Leader Enterprises Ltd., in connection with their purchases on June 21 and 22 of Omnipoint (OMPT) common stock.
The purchases occurred just prior to the June 23 announcement that VoiceStream (VSTR) was acquiring Omnipoint.
The SEC charged Hui and Rich Leader accumulated 121,000 shares of Omnipoint stock. The per share cost ranged from 19-1/8 to 21-5/8; immediately after the announcement, Omnipoint's stock rose to $29 per share.
Hui and Rich Leader agreed to settle without admitting or denying the allegations. They were required to discharge $1.02 million in trading profits, plus pre-judgment interests, and pay a $1.02 million penalty.
VoiceStream's controlling shareholder, Hutchison Telecommunications PCS Ltd., has committed $957 million to the new entity, the SEC said. Hutchison is an indirect subsidiary of Hutchison Whampoa, a Hong Kong conglomerate.
VoiceStream was down 1-3/8 to 36-3/4 in Monday afternoon trading. Omnipoint was down 1-3/8 to 36.
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