Segantii Trial: SFC Did Not Contact Lone Pine Over Esprit Block Sale, Official Testifies

Hong Kong’s Securities and Futures Commission did not contact US investment firm Lone Pine Capital during its insider trading probe into hedge fund Segantii Capital Management, an SFC enforcement director told a court on May 29, 2026. Mabel Wong said the regulator lacked jurisdiction to compel the firm and instead relied on information from Bank of America, which arranged the block trade of Esprit Holdings Ltd. shares in June 2017. The testimony, which wrapped up the prosecution’s case, drew scrutiny from defense lawyers who highlighted the SFC’s decision not to interview key bankers until October 2025. Segantii founder Simon Sadler, former senior trader Daniel La Rocca, and the firm are accused of trading on inside information ahead of Lone Pine’s sale of a 10% stake in Esprit on June 15, 2017. The defendants sold shares and built a short position after La Rocca identified the seller during calls with Bank of America traders on June 14, 2017. All have pleaded not guilty. The trial resumes this week with defense witnesses.