SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16260 / August 25, 1999
SECURITIES AND EXCHANGE COMMISSION v. RAYMOND LUM KWAN SUNG, 97 Civ. 2664 (U.S.D.C., S.D.N.Y.) (RMB)
SINGAPORE BUSINESSMAN RAYMOND LUM TO PAY $2.25 MILLION TO SETTLE INSIDER TRADING CASE
The Commission has settled its civil insider trading case against Raymond Lum Kwan Sung ("Lum"), the Executive Chairman and a substantial shareholder of Singapore-based Lum Chang Holdings Limited. In its complaint, filed on April 25, 1997, the Commission alleges that Lum traded in the securities of APL Limited while in possession of material, nonpublic information concerning APL's acquisition by Neptune Orient Lines Ltd. ("NOL"), a shipping company based in Singapore. Without admitting or denying the Commission's allegations, Lum consented to the entry of a final judgment permanently enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5, requiring him to disgorge alleged unlawful trading profits of $1,257,343, ordering him to pay prejudgment interest of $96,251, and ordering him to make an additional payment of $900,000 pursuant to Section 21A of the Exchange Act. The settlement, which is subject to judicial approval, was filed with the court today.
Lum, 53, bought approximately $4.4 million of APL common stock during a three-week period in late February and March 1997. On Sunday, April 13, 1997, NOL publicly announced that it had agreed to acquire all of APL's outstanding common stock at a substantial premium over the pre-announcement stock price. The value of Lum's APL shares immediately increased by more than $1.25 million.
The Commission gratefully acknowledges the assistance it has received in this matter from the Commercial Affairs Department of the Singapore Ministry of Finance.