SEC alleges $13m 'illegal profits' in CNOOC deal

SEC claims: Firms profited illegally off Nexen deal

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Kathrine Schmidt

 27 July 2012 21:54 GMT

US regulators say they have obtained a court order to freeze accounts of Hong Kong and Singapore traders suspected of making $13 million off advance knowledge of CNOOC's takeover of Nexen.

The US Securities Exchange commission alleges in New York court that Well Advantage Limited, a Hong Kong trading firm, and other traders amassed Nexen shares ahead of the $15.1 billion deal.

According to the SEC, the firm "is controlled by Hong Kong businessman Zhang Zhi Rong, who also controls another company that has a 'strategic cooperation agreeement' with CNOOC," the agency said in a statement.

The SEC requested the freeze less than a day after the firm placed an order to sell all its Nexen stock.

“Well Advantage and these other traders engaged in…

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