Hanlong's Xiao arrives in Australia and is charged with insider trading
Former Hanlong Mining boss Steven Xiao has arrived in Australia and been charged with insider trading.
Xiao appeared before Sydney's Central Local Court and was formally charged with 104 offences related to alleged insider trading ahead of the company's takeover bids for Australia's Sundance Resources and Bannerman Resources in 2011.
It is one of the largest insider trading cases ever brought by the corporate regulator.
The Australian Securities and Investments Commission (ASIC) says the charges are related to suspected insider trading in financial products related to the two Australian firms in July 2011, while Xiao was Hanlong's managing director.
ASIC says each offence, if proven, carries a maximum penalty of 10 years' jail.
Xiao was arrested in Hong Kong in January and extradited back to Australia overnight after failing to return from a visit there during the investigation in 2011.
On November 17, 2011, the New South Wales Supreme Court had given him approval for a short trip to China, returning on November 26.
However, after departing Australia on November 21, 2011, Xiao did not return.
Xiao was stood down from his role at Hanlong when the insider trading probe began in September 2011.
Hanlong's proposed takeovers of iron ore miner Sundance and uranium company Bannerman both ended up falling through.
Sundance's main asset is a planned iron ore mine in West Africa, and last month it announced that it had received a $40 million investment from a private resources investor, Gennadiy Bogolyubov, to help it continue developing that project.作者: 8080 时间: 11-10-2014 05:35
FROM: http://www.abc.net.au/pm/content/2013/s3691598.htm
Former mining executive sentenced to jail for insider trading
TIM PALMER: A former executive of a Chinese mining company has been sentenced to jail for insider trading.
In Sydney's Supreme Court, Calvin Zhu admitted he was a serial inside trader who made profits for himself and associates using inside information relating to planned takeover bids.
For more, I joined by finance reporter Sue Lannin.
Sue, what did the court decide?
SUE LANNIN: Well we saw Justice Peter Hall in the New South Wales Supreme Court sentence Calvin Zhu to two years and three months in jail.
So he will serve a minimum of 15 months in jail. He's expected to be released in May, 2014. That's based on good behaviour. Now the judge stressed how serious the offence was.
Mr Zhu pleaded guilty to three counts of insider trading. He made profits for himself and his associates of more than $1.3 million, as you said, using inside information for planned takeover bids.
He actually got friends, including his mother-in-law, to buy shares and then sell shares, when he gave them the information.
He made about $370,000.
The judge took into account that Mr Zhu was very remorseful, he cooperated with authorities. In fact, the only reason ASIC, the corporate regulator, has got this conviction is because they had a confession.
Their market surveillance team noticed there were strange trades going on, they tracked down Mr Zhu, he ended up confessing and admitted it. And because he made an early guilty plea, they've got this conviction.
TIM PALMER: Yes, because in the past insider trading cases have shown themselves to be extraordinarily difficult for ASIC to prove. So what's the background to this one?
SUE LANNIN: Well this one, Mr Zhu has worked in the investment banking and corporate field for some years. He's only young. He's only in his 30s. He worked for three firms including the investment bank Credit Suisse and the Chinese firm Hanlong Mining. In fact, he started insider trading in 2006.
Now investigations are continuing in regards to three other people that were involved with Mr Zhu at Hanlong Mining. Now, that included the former managing director of Hanlong Mining in Australia, the former chief operating officer and the former chief financial officer.
They basically set up an investment fund that was based in Hong Kong that was their private investment fund. They were involved in takeover bids for Bannerman Resources, which is a uranium miner, and Sundance Resources, which is an iron ore miner. They got their associates to buy the shares just before the takeover bids were made. And then once they were made and the shares went up, they sold the shares.
So in fact ASIC is still continuing investigations into these other people. One of, the ring leader, Mr Steven Xiao, the judge called him a domineering personality, he's actually fled to China.
Now Mr Zhu said in his submissions to the court that he deeply regretted the offences. He said he didn't have the courage though to stand up to Mr Xiao and he said that he had become accustomed to a lavish lifestyle.
TIM PALMER: It's all ended now, it appears. Mark one up to ASIC at least. Sue Lannin thanks for filling us in.作者: elin-lu 时间: 11-10-2014 16:28
估计元芳晕了。。。他看不懂英文呀。作者: 8080 时间: 11-10-2014 22:22
你太有才了！