A 31-year old Sydney man today appeared before court charged with eight counts of insider trading, following an ASIC investigation.

ASIC alleges Mr Fei Yu procured the acquisition of securities and aided and abetted the acquisition of contracts for difference (CFDs) in Veda Advantage Limited (Veda) in January 2007 while he possessed inside information about a proposed takeover of Veda by Pacific Equity Partners (PEP).

Mr Yu allegedly received the information from close friend, Mr Bo Shi Zhu, who was an executive in the corporate finance advisory division of Caliburn Partnership Pty Ltd (now Greenhill & Co, Inc) who were advising Veda regarding the proposed takeover.

Mr Yu allegedly made more than $20,000 from the trades.

Appearing before Sydney’s Downing Centre Local Court, Mr Yu was not required to enter a plea and the matter was adjourned to 7 October 2014.

The Commonwealth Director of Public Prosecutions is prosecuting the matter.

Background

The alleged insider trading was identified by ASIC’s market surveillance team and referred to ASIC’s markets enforcement team for investigation and enforcement action.

The maximum penalties associated with the alleged offences at the time they were committed range from 5 years jail and/or a fine of $220,000. For offences committed on or after 13 December 2010 the penalties increased to a maximum penalty for individuals of 10 years jail or a fine of $495,000, or both.

In 2012, ASIC prosecuted Mr Zhu regarding these (and other) offences (refer: 13-027MR). In February 2013, Mr Zhu was sentenced to 2 years and 3 months jail, to serve a minimum term of 15 months.

Since 2013, ASIC has been successful in obtaining 13 insider trading convictions. These include:

• Bo Shi Zhu (refer: 13-027MR)
• [This media release was amended on 5 December 2022 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]
• Jia Yao Mathew Tan (refer: 13-083MR)
• [This media release was amended on 29 July 2021 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]
• [This media release was amended on 12 April 2023 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]
• [This media release was amended on 29 July 2021 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]
• John Kay Jin Khoo (refer: 13-209MR)
• [This media release was amended on 23 June 2023 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]
• [This media release was amended on 29 July 2021 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]
• David Thien Anh Luong (refer: 13-333MR)
• [This media release was amended on 13 November 2023 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]

Editor's note 1:

On 7 October 2014 the matter was mentioned and adjourned until 11 November 2014.

Editor's note 2:

On 11 November 2014 the matter was mentioned and adjourned until 25 November 2014.

Editor's note 3:

On 25 November 2014 the matter was mentioned and adjourned until 16 December 2014.

Editor's note 4:

On 16 December 2014 the matter was adjourned until 13 January 2015.

Editor's note 5:

On 13 January 2015 the matter was adjourned until 10 February 2015.

Editor's note 6:

The matter has been adjourned for a committal hearing on 5 June 2015.

Editor's note 7:

On 5 June 2015 Mr Yu was committed for trial. The matter is listed in Sydney District Court for arraignment on 3 July 2015.

Editor's note 8:

On 3 July 2015 the matter was stood over until 31 July 2015

Editor's note 9:

On 31 July 2015 the matter was listed for trial from 14 March 2016 for an estimate of 4 weeks.

Editor's note 10:

On 11 March 2016, Mr Yu pleaded guilty to one charge of insider trading (refer: 16-073MR)