Hong Kong court will hear the significant case of Simon Sadler, the hedge‑fund founder dubbed the “block‑trade king,” on May 4. Prosecutors allege that Sadler, his firm Segantii Capital Management and former trader Daniel La Rocca used inside information to profit from a $1.14 million Esprit block trade in 2017. The trial marks one of the few high‑profile criminal prosecutions of a financial services firm in the city.

Segantii, once a $6.2 billion AUM multistrategy shop, built its reputation by supplying liquidity for large equity blocks, attracting banks that needed discreet buyers. The Esprit transaction involved a 5%‑plus discount to market price, with Segantii buying and short‑selling shares before Lone Pine Capital’s sale. Bank of America’s compliance team later flagged the trade, prompting an internal probe and regulator notification.

Sadler and La Rocca have pleaded not guilty, and their lawyers declined comment. A judge has ruled that internal Bank of America documents, including a Freshfields report, may be admitted as evidence, despite the bank’s privilege objections. The outcome could reshape how Asian block‑trade practices are monitored and affect banks’ willingness to partner with aggressive hedge funds.