(Bloomberg) -- Daniel La Rocca, a former trader at Segantii Capital Management Ltd. accused of insider dealing in Hong Kong, won’t be joining JPMorgan Chase & Co. as planned, according to a person familiar with the matter.

La Rocca was set to join JPMorgan as head of Asia-Pacific cash stocks trading, people familiar told Bloomberg News in late February. The hiring has since fallen through, the person said, without providing a reason. JPMorgan told hedge fund clients last week that La Rocca is not joining for personal reasons, a person with knowledge of the matter said. 

A representative for the New York-based bank declined to comment. La Rocca didn’t immediately respond to requests for comment. 

Read more: JPMorgan Taps La Rocca to Lead APAC Cash Single Stocks Trading

Hong Kong’s securities watchdog started criminal proceedings against Segantii, founder Simon Sadler and La Rocca over alleged insider dealing, according to a statement Thursday. The Securities and Futures Commission alleged wrongdoing involving shares of a locally listed company before a 2017 block trade. 

“Segantii intends to defend itself vigorously against the charge,” according to a statement from a company spokesperson.

Sadler and La Rocca appeared in court Thursday. The two men were released pending the next hearing, the Hong Kong regulator said. Sadler didn’t immediately respond to a request for comment. 

La Rocca had been with the firm for almost 10 years, save for a short stint at Evo Capital Management in 2022, according to licensing data posted on the SFC website.

--With assistance from Gillian Tan and Pei Li.

(Updates with Segantii comment in fifth paragraph)

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