A former director of Dow Jones agreed to pay $8.1 million (£4.1 million) to the US Securities and Exchange Commission yesterday for his part in attempted insider dealing at a time when News Corporation had made a secret offer to buy the company.

Sir David Li, who is also chief executive of the Bank of East Asia, allegedly told a friend, Michael Leung, who in turn passed on the information to his daughter and son-in-law, according to an SEC statement issued yesterday.

The two relatives, Charlotte Wong and her husband KK Wong, bought $15 million in Dow Jones stock, expecting a large price rise when news of the bid leaked, and stood to make an estimated $8 million on the transaction.

Sir David was ordered to pay $8.1 million in a civil penalty, while Michael Leung was told to offer up $16.2 million, although in a settlement with the US regulator neither man admitted or denied the SEC’s allegations. Mr Wong was ordered to pay $80,000 for his part in the alleged deception.

Sir David – who is a Hong Kong legislator – escaped being barred from serving as a company director in the United States.

News Corp, parent company of The Times, subsequently acquired Dow Jones for $5.5 billion.

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