Raymond Wong sentenced to 5 months' jail for insider trading

Raymond Wong was sentenced to five months' jail and fined HK$99,000 (S$16,300) for insider trading involving his younger sister Jenny Wong.

Hong Kong media reported that the 80-year-old producer-actor was sentenced today (June 9) at West Kowloon Magistrates' Courts.

In addition, he is also required to pay legal costs amounting to approximately HK$374,000.

In meting out the sentence, the magistrate said while his sister's actual gains from the trading were not substantial, Raymond's action as a shareholder of Pegasus Entertainment Holdings would impact public confidence in the Hong Kong stock market.

He added that the damage to Raymond's reputation and the impact on his mental and physical health were not sufficient grounds for a reduced sentence.

Raymond is currently out on bail of HK$200,000 pending an appeal.

This comes after Raymond was convicted in May of instigating Wong to engage in insider trading with Pegasus Entertainment Holdings — whom he co-founded with his son Edmond — in 2017. The company was renamed Transmit Entertainment in 2018.

At the time, while he was in negotiations to sell his controlling stake in the company, he became aware of non-public information, including the signing of a memorandum of understanding and receipt of HK$10 million deposit from a potential buyer.

Using the deposit he received, he transferred some money to Wong, advising her on the timing and price to buy Pegasus' shares.

According to the Securities and Futures Commission (SFC) of Hong Kong, it was believed Wong profited more than HK$1 million from the trading.

According to reports, Raymond, who was known for acting in films including Happy Ghost (1984) and All's Well, Ends Well Too (1993), had pleaded for leniency in his sentence, claiming he underwent surgery for prostate cancer in 2024 and had been in poor health since then.

He added that the investigation, which spanned eight years, had affected his mental health, resulting in frequent insomnia and anxiety, and he had to see a psychiatrist regularly for treatment.

His lawyers also submitted several letters of mitigation, including one from TVB assistant general manager Virginia Lok, which mentioned his contributions to the Hong Kong film industry throughout the decades and his donations during the Covid-19 pandemic in 2020.

Raymond reportedly pleaded with the court then to not sentence him to prison, adding he had decided to retire completely and spend the rest of his life recuperating.

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yeo.shuhui@asiaone.com