The Securities and Exchange Commission reportedly plans to bring civil charges against Dow Jones board member David Li over an insider-trading case linked to Rupert Murdoch's bid for the company.

Li is a prominent Hong Kong businessman and chairman and chief executive officer of Bank of East Asia, a mid-tier Hong Kong lender.  

The Wall Street Journal, which is published by Dow Jones, cites unnamed sources who say that the S.E.C. has sent Mr. Li a Wells Notice signaling its intent to file civil charges. The notice allows Li a last chance to attempt to dissuade the agency from pressing charges.

Mr. Li's name was first mentioned in context with insider trading in May, based on connections to Kan King Wong and his wife, Charlotte Ka On Wong Leung, whom the S.E.C. charged with insider trading at that time. The couple made millions when they bought 415,000 shares of Dow Jones two weeks before News Corp.'s bid was announced.
Li has social and business contact with Mrs. Leung's father, Michael Leung Kai Hung, who is also a Hong Kong businessman.

Dow Jones' board just endorsed a $5 billion buyout offer from Rupert Murdoch's News Corp. on Tuesday.