11/03/2016 - 11:57

Xiao jailed for insider trading

11/03/2016 - 11:57

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Former Hanlong Mining boss Hui Xiao has been handed an eight-year prison sentence by a Sydney court for insider trading with regards to two Perth resources companies.

Former Hanlong Mining boss Hui Xiao has been handed an eight-year prison sentence by a Sydney court for insider trading with regards to two Perth resources companies.

Mr Xiao, also known as Steven Xiao and Jiayi Xiao, was sentenced to a total of eight years and three months imprisonment, after he pleaded guilty to 102 illegal trades in financial products related to Sundance Resources and Bannerman Resources in July 2011, while he was managing director of Hanlong.

In July 2011, Hanlong made a $1.65 billion acquisition bid for Sundance, and a $145 million takeover bid for Bannerman.

Neither bid was successful.

He will be eligible for parole in July 2019.

“This sentence demonstrates the seriousness of insider trading,” Australian Securities and Investments Commission commissioner Cathie Armour said.

“Maintaining confidence in the integrity of our financial markets is vital.”

Mr Xiao was under investigation shortly after the illegal trades were made, but the Supreme Court of New South Wales allowed him to travel to China in November 2011 on the provision that he return back to Australia within a week.

Mr Xiao failed to return, at which point charges were laid against him.

Mr Xiao was arrested in Hong Kong in January 2014 and extradited to Australia that September.

Late last year he pleaded guilty to the charges at the Central Local Court in Sydney.

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