Hedge fund firm Tiger Asia Management has been ordered to repay $6 million to more than 1,800 investors after admitting to insider trading and share price manipulation,
The New York Times reported that New York-based Tiger Asia and two of its senior officers, Bill Hwang and Raymond Park, were ordered by a court on Friday to pay $5.8 million in restitution to its clients that were affected by the firm’s illegal trades in the shares of Bank of China and China Construction Bank.
Tiger Asia was charged by Hong Kong’s Securities and Futures Commission in 2009 for shorting on the two Chinese banks after receiving advanced notice that they were planning share placements, which earned the hedge fund more than $1.1 million.
The restitution amount represents the difference between the actual price of the shares that were sold by Tiger Asia and the value those shares would have if insider information on the share placements had been taken into account.
Tiger Asia was founded in 2001 by Hwang, who previously worked at Julian Robertson’s Tiger Management.