Former Hanlong Executive Charged on Insider Trading
A mining executive who fled Australia three years ago has been extradited from Hong Kong and charged with 104 insider trading offenses linked to planned takeovers by a Sichuan Hanlong Group unit.
Xiao Hui, also known as Steven Xiao, a former managing director of the unit, is accused of persuading his wife and other parties to acquire shares and securities in Bannerman Resources Ltd. and Sundance Resources Ltd. while he had information on takeover bids for the companies, according to Australia’s corporate regulator.
No plea was entered to the charges and Xiao made no application for bail at a hearing at Sydney’s Central Local Court, the Australian Securities & Investments Commission said today in an e-mailed statement. Xiao arrived in Australia at about 7 a.m. local time accompanied by Australian Federal Police officers following his extradition from Hong Kong.
The case is one of the most serious in ASIC’s history, Anthea Li, a lawyer from Hong Kong’s Department of Justice, told a hearing there in March. Xiao’s charges come after Liu Han, the founder of Sichuan Hanlong, was sentenced to death in May by a Chinese court for Mafia-like crimes.
Calvin Zhu, Xiao’s former colleague at Hanlong, was sentenced last year to 27 months in jail after pleading guilty to three counts of insider trading.
In March, a court disclosed Xiao had requested asylum in Hong Kong. Robert Tibbo, a lawyer for Xiao, argued threats had been made in Australia against the former executive and his family.
Xiao was remanded in custody to appear at a hearing on Nov. 26., ASIC said in its statement. The charges each carry a maximum penalty of 10 years in jail, the regulator said.
Source: bloomberg- Former Hanlong Executive Charged on Insider Trading
