The insider trading investigation into Hanlong Mining executives has taken a scalp, with Hanlong's former vice president, Calvin Bo Shi Zhu, pleading guilty to charges relating to serial insider trading dating back to 2006.
The plea comes at a difficult time for Hanlong's takeover bid for the listed Australian miner Sundance Resources, with China's National Development and Reform Commission scheduled to make a decision this week on whether it will approve the $1.65 billion bid.
Zhu entered guilty pleas at the Downing Centre Local Court this morning.
The first charge related to when Zhu held an executive position with Caliburn, and had inside information about the takeover of Veda Advantage Ltd by Pacific Equity Partners. Advertisement
When later employed as an associate at Credit Suisse, he further used inside information about the proposed takeover of Funtastic Limited by Archer Capital, and also the proposed takeover of the Adelaide Managed Funds Asset Backed Yield Trust by Bendigo and Adelaide Bank.
The third charge related to his employment as vice president, investments, at Hanlong Mining. In the three matters he pleaded guilty to procuring various friends - Ms Fan Fan Chen, Mr Fei Yu, and his mother-in-law Jing Juan - to acquire the securities and contracts for difference.
The Australian Securities and Investments Commission had alleged in earlier court proceedings that Mr Zhu, and other former and current executives including Hanlong's former managing director Steven Xiao, traded in shares and contracts for difference of Sundance Resources, and another Hanlong takeover target, Bannerman Resources.
Millions were made in the trades, with the profits sent offshore to accounts in Hong Kong. Steven Xiao failed to return to Australia, and authorities have conceded that he has fled the jurisdiction.
In a statement, ASIC said Zhu was charged on July 12 this year, less than a year after its markets surveillance team identified the suspicious trading. The investigation was part of the multi-agency taskforce Project Wickenby.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)