U.S. accuses the founder of China-backed buyout fund of insider trading

Almaty. October 31. Silkroadnews - The U.S. accuses the founder of China-backed buyout fund of insider trading, Reuters reported.
“The founder of a private equity firm with Chinese state backing has been charged with insider trading related to the attempted acquisition of Lattice Semiconductor Corp (LSCC.O), U.S. authorities said,” the report said.
The charges against Benjamin Chow represent a serious blow to the direct investment fund he created just last year, Canyon Bridge Capital Partners, with capital from China Reform Holdings, a Chinese state-backed fund.
Chow denies all charges. According to the indictment, Chow’s fund Canyon Bridge tried to conduct a deal to acquire the British chipmaker Imagination Technologies Group Plc (IMG.L) for 550 million pounds ($737 million) after the U.S. President Donald Trump blocked the acquisition of Lattice Semiconductor Corp (LSCC.O) for $1.3 billion last month due to the national security concerns.
The FBI said that Chow had conspired to commit fraud with securities, sending insider information on Lattice Semiconductor Corp. (LSCC.O) deal to his friend and former colleague before the official announcement of the deal.
According to the U.S. Securities and Exchange Commission’s information, this former colleague was Michael Yin, a former private equity executive in Hong Kong, who had become a hedge fund manager. Yin, allegedly received a profit of $5 million due to information received from Chow.
Chow’s attorney George Canellos, Benjamin Chow said Chow “is not alleged to have made a dime from the scheme, and he had no possible motive to enrich those who traded. He stood to lose enormous amounts if traders purchased the stock and drove up the company’s share price in the midst of his own negotiations.”
In turn, the representative of Canyon Bridge said that the planned acquisition of Imagination will still take place.
“The charges against Chow carry a potential prison sentence and maximum fines of $5 million. Canyon Bridge has been trying this year to attract investors from outside China. The indictment against its founder could represent a hurdle to these efforts,” the report reads.