The former vice-president of Hanlong Mining, Bo Shi Zhu, also known as Calvin Zhu, has been sentenced to two years and three months jail.
Zhu must serve a minimum of 15 months after pleading guilty to three counts of insider trading. The case was heard in the New South Wales Supreme Court.
Zhu pleaded guilty in mid-2012 to using inside information to trade while working for Caliburn Partnership, Credit Suisse and Hanlong Mining. The conduct occured between 2006 and 2011.
Zhu used information about takeovers, including Veda Advanatage and Funtastic, to instruct friends to buy or sell contracts for differences. The Australian Securities and Investments Commission said the gross profits from Zhu’s offending was over $1.3 million, and his share of the profits approximately $370,000.
ASIC deputy chairman Belinda Gibson said the regulator took swift action.
'‘Taking over responsibility for real-time supervision of the market in 2010 has meant early identification of suspicious behaviour and early engagement of our enforcement teams,’' she said today.
'‘We’ve put more resources and energy into fighting insider trading and our determination is paying dividends with convictions being seen.
'‘ASIC will continue to use its systems, people and powers to catch insider traders and to achieve fairness in the marketplace.’'
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.