ASIC: Former Royal Bank Of Canada Employee Jailed For Insider Trading

A former banking associate at the Royal Bank of Canada (RBC) was sentenced today to 23 months in jail.

Appearing in the Sydney District Court, Mr John Kay Jin Khoo was sentenced to a minimum of 14 months in jail, to be released on his own recognisance in the sum of $500 to be of good behaviour for the remaining 9 months. 

Mr Khoo, of Bulimba, Queensland, pleaded guilty to a total of four charges of communicating inside information (refer: 12-322MR).

ASIC Commissioner Cathie Armour said, ‘Insider trading will not be tolerated. Regardless of whether it is buying and selling, communicating information, or any other form, ASIC has the people, ASIC has the power, and ASIC has the systems in place to catch the individuals involved in this behaviour and punish them accordingly.

‘It cannot be any clearer. If you choose to act in this way, there is a very good chance you will be caught, and as today’s judgment shows, there is a very good chance you will go to jail’.

Mr Khoo communicated the inside information to Mr Jia Yao Mathew Tan, of Waterloo, Sydney, who was sentenced in April this year, and another person (refer: 13-083MR). 

Mr Khoo gained the inside information while working at RBC on the proposed acquisition of Macarthur Coal Limited by Peabody Energy Corporation and ArcelorMittal S.A, and the proposed takeovers of Caledon Resources PLC by Guangdong Rising Assets Management Co Limited and of Mantra Resources Pty Ltd by JSC Atomredmetzoloto between 2010 to mid-2011.

In handing down the decision the judge said, ‘This was a gross breach of trust by a true insider’. 

ASIC acknowledges the assistance provided by the Royal Bank of Canada during the investigation.

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

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