SFC recovers $23 million for investors from restoration orders against insider dealer Du Jun 

Court appointed administrators, Mr John Lees and Mr Mat Ng of JLA Asia Limited, have completed distributions of restoration payments to all but three of the 297 counterparties to the insider dealing by convicted insider trader Mr Du Jun.

A total of $23,086,314 out of the restoration fund has been paid out. The Securities and Futures Commission (SFC) and the administrators have taken all possible steps to contact the three remaining investors with no success. The remaining sum of $813,686 due to the remaining three investors has been returned to Du after the approval of the court.

The purpose of these orders, which are not compensation orders, is to make insider traders financially accountable to those with whom they trade and to restore those counterparties to the same position, in financial terms, they were in before the insider dealing.

The SFC would like to thank the China Securities Regulatory Commission, the US Securities and Exchange Commission, the Thailand Securities and Exchange Commission and the administrators for assisting the SFC in locating the overseas investors.

The restoration orders were the result of civil proceedings the SFC commenced against Du in July 2007 under section 213 of the Securities and Futures Ordinance. The civil proceedings were delayed pending the completion of parallel criminal proceedings against Du which ended when Du withdrew an application seeking to appeal his convictions and sentence for insider dealing in the Court of Final Appeal.

Source: SFC – SFC recovers $23 million for investors from restoration orders against insider dealer Du Jun

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