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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
COMMISSION COMPLAINT RENAISSANCE SECURITIES HONG KONG EXCHANGE COMMISSION TRADING ALLEGES PROPOSED ACQUISITION HOTEL SHARES DISTRICT DOUBLETREE ACCORDING COMMON STOCK UNITED STATES COURT YORK CIVIL INSIDER TRADING LAWSUIT NONPUBLIC INFORMATION RENAISSANCE HOTEL GROUP BREACH DUTY TRUST HOTEL MANAGEMENT FIRM PROFITS |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15397 / June 26, 1997
SECURITIES AND EXCHANGE COMMISSION v.FREDERICK LIU, United States
District
Court for the Southern District of New York, Civil Action No. 97
CIV4709
(DC)
On June 26, 1997, the U.S. Securities and Exchange Commission
filed an
insider trading lawsuit in federal district court against Frederick
Liu, a
35-year-old resident of Hong Kong. The Commission alleged that in
December
1996 Liu obtained material nonpublic information concerning
Doubletree
Corporation's proposed acquisition of Renaissance Hotel Group in breach
of
a duty of trust and confidence. According to the complaint, Liu
purchased
more than 1.4 million shares of Renaissance based on that information
just
before the announcement of the transaction. Liu has consented,
without
admitting or denying the allegations in the complaint, to be enjoined
from
violating the antifraud provisions of the federal securities laws and
to
pay $2 million in civil money penalties.
Renaissance Hotel Group, Inc. is a hotel management firm based in
Hong
Kong, and its common stock is listed for trading on the New York
Stock
Exchange. Doubletree, based in Phoenix, Arizona, is also in the
hotel
management business.
According to the complaint, advisors to Renaissance met with
representatives of Doubletree in mid-December 1996 and outlined terms
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