SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

Litigation Release No. 16203 / July 6, 1999

SECURITIES AND EXCHANGE COMMISSION v. ONG CONGQIN BOBBY AND LUM KWAN SUNG, 97 Civ. 2664 (U.S.D.C., S.D.N.Y.) (RMB)

COMMISSION DROPS INSIDER TRADING CLAIM AGAINST BOBBY ONG

On July 1, 1999, the Securities and Exchange Commission voluntarily dismissed its civil insider trading claim against Ong Congqin Bobby (a.k.a. Bobby Ong) on grounds of insufficient evidence.

Mr. Ong is one of three defendants the Commission sued for insider trading in April 1997 based on their purchases of the securities of APL Limited, a California-based shipping company, in advance of the public announcement, on April 13, 1997, that the company would be acquired in a merger with Neptune Orient Lines Ltd., a Singapore-based shipping company. Mr. Ong, a Singapore citizen, bought approximately $135,000 of APL call options on Friday, April 11, 1997-the last trading day before the acquisition was announced. The value of his options increased to over $600,000 after the announcement. On April 15, 1997, the Commission filed suit against Mr. Ong and another defendant, Abdul Ismail, and immediately obtained a court order freezing their trading accounts to prevent them from moving their trading proceeds outside of the United States. The Commission added a third defendant, Raymond Lum Kwan Sung, to the case on April 25, 1997.

After a thorough investigation of Mr. Ong's trading, the Commission voluntarily dismissed its claim against him because it did not have sufficient evidence to proceed to trial.

The Commission previously withdrew its claim against Mr. Ismail, in August 1997, also based on insufficient evidence. The Commission's case against Mr. Lum remains pending. A trial date has not yet been scheduled.

The Commission gratefully acknowledges the assistance it has received in this matter from the Commercial Affairs Department of the Singapore Ministry of Finance.