Sydney Resident Fined $10,000 for Insider Trading after ASIC Investigation

A Sydney-based resident, Fei Yu, has pleaded guilty to a charge of insider trading and has formally admitted a second insider trading offence, as per a statement issued today by the Australian Securities and Investments Commission (ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term).

Yu has been released on bail subject to good behaviour for 12 months and is required to pay a penalty totalling $10,000. In addition, Yu will pay the net profits from his offence, totalling $17,527, to a charitable foundation. He will also be automatically disqualified from managing a corporation for 5 years.

History

Yu admitted procuring the Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term of shares and contracts for difference (CFDs) in Veda Advantage Ltd in January 2007 while possessing inside information about a proposed takeover of Veda by Pacific Equity Partners. The accounts used to acquire the shares and CFDs were held in the name of Yu’s mother and an associate.

Yu received the inside information from friend, Bo Shi Zhu, who was an executive in the corporate finance advisory division of Caliburn Partnership Pty Ltd who advised Veda regarding the proposed takeover.

Overall, Yu invested $34,795 in Veda shares and CFDs and made a gross profit of $20,567 from the trades.

ASIC Commissioner Cathie Armour commented: "ASIC is focused on deterring insider trading conduct wherever it occurs. Every prosecution is another important step in promoting confidence in the integrity of Australia's financial markets."

Yu first appeared in court on 12 August 2014 initially charged with eight individual counts of insider trading, following an ASIC investigation.

Penalties

The maximum penalty for the alleged offence at the time it was committed was 5 years jail and a possible fine of $220,000. For offences committed on or after 13 December 2010, the maximum penalty increased to 10 years jail or a fine of $495,000, or both.

Bo Shi Zhu Zhu was also convicted of insider trading on February 2013 relating to Yu, plus additional offences, and sentenced to imprisonment for 2 years and 3 months.