SEC Goes After|’Suspicious’ Chinese Trader

MANHATTAN (CN) - The CEO of a Chinese tech company made $1 million from illegal inside trading on another Chinese tech firm, the SEC claims in court.

The SEC sued Haijian Luo, 33, of Guangzhou, on Tuesday in Federal Court.

Luo is CEO of 4399 Co. Ltd., an online gaming and animation company.

In "suspicious and highly profitable trading" on June 17, Luo made $1,019,537 from a "remarkably timed purchase" of call options in Qihoo 360 Technology shares, the SEC says.

Qihoo announced that very day a buyout offer from its CEO and others, and its shares rose by 9 percent. Luo made his remarkably timed purchase just before the public announcement.

He did it through a U.S. brokerage account, and on Monday he told the broker to wire him $600,000 of the money to an account in Singapore, the SEC says. It wants his accounts frozen, disgorgement and penalties.

Guangzhou is just northwest of Hong Kong.

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