ASIC: Former Hanlong Mining Executive Jailed For Insider Trading

Mr Bo Shi Zhu, also known as Calvin Zhu, the former Hanlong Mining Investment Pty Ltd (Hanlong Mining) vice-president who pleaded guilty to three counts of insider trading, was today sentenced to 2 years and 3 months jail.

Zhu, 31, of Cammeray, appeared at the NSW Supreme Court before judge Peter Hall who sentenced him to 2 years and 3 months jail, to serve a minimum term of 15 months. In making the order, judge Hall, among other things, took into consideration Mr Zhu’s high level of cooperation with ASIC’s investigation and early guilty plea.

Zhu pleaded guilty in July 2012. The charges relate to conduct engaged in by Mr Zhu, from December 2006 to July 2011, while working for three different employers: Caliburn Partnership Pty Limited; Credit Suisse Management (Australia) Pty Ltd; and Hanlong Mining (refer: 12-179MR).

ASIC Deputy Chairman Ms Belinda Gibson praised the swift action of ASIC’s employees in bringing the case to the courts. Mr Zhu was charged less than one year after ASIC identified the suspicious trading and started its investigation.

‘Taking over responsibility for real-time supervision of the market in 2010 has meant early identification of suspicious behaviour and early engagement of our enforcement teams,’ Ms Gibson said.

‘We’ve put more resources and energy into fighting insider trading and our determination is paying dividends with convictions being seen.

‘ASIC will continue to use its systems, people and powers to catch insider traders and to achieve fairness in the marketplace.’

The matter was prosecuted by the Commonwealth Director of Public Prosecutions.

Background

As previously stated, ASIC’s investigation is ongoing regarding other persons associated with Hanlong Mining. ASIC does not propose to comment further at this stage.

Since 1 January 2009, ASIC has prosecuted 26 insider trading actions. Of those, 16 have been successfully prosecuted, comprising 13 matters finalised and three guilty pleas where the individuals are awaiting sentencing. Eight individuals are awaiting trial and are contesting their charges. Two matters have been unsuccessful.