Hong Kong tycoon David Li said he reached a settlement with US regulators over insider trading allegations during Rupert Murdoch's purchase of Dow Jones to protect his family and businesses.
Li, the chairman and chief executive of Bank of East Asia, said the choice to pay a civil penalty of 8.1 million US dollars after a Securities and Exchange Commission (SEC) probe was made to avoid a drawn-out court battle.
"I was faced with a difficult choice, either go to court and have this matter go on for years - I was told it could last seven to 10 years - or accept the settlement," he told reporters.
"I chose the settlement in the interests or my own family, my business and my public responsibilities." Li was accused of illegally tipping off his close friend Michael Leung Kai Hung, about Rupert Murdoch's planned take-over of Dow Jones and Co Li is a former director of Dow Jones.
An SEC complaint alleged that Leung, with the help of his daughter Charlotte Ka On Wong Leung and son-in-law Kan King Wong purchased some 15 million dollars of Dow Jones shares in their account at Merrill Lynch after the tip. Li has neither admitted or denied the accusation, as part of the settlement, but is also gagged him from commenting on it.
"I have seen the one-sided news reports, but I cannot fight back because under the terms of the agreement, I can only stand with my hands behind my back, no matter how many punches or protests," he said, at BEA's announcement of annual results.
Li, who is also a member of Hong Kong's legislature and a close ally and advisor of the city's Chief Executive Donald Tsang, said he would seriously consider running again for his Legislative Council seat.