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Wednesday 22 February 2017

17-040MR Sydney man sentenced to 350 hours community service after pleading guilty to dishonest use of his position

Following an ASIC investigation, Mr Shun Yuen Ken Li (also known as Leo Lee), of Roseville Chase, New South Wales has been sentenced in the Downing Centre Local Court to a community service order of 350 hours.

On 13 December 2016, Mr Li pleaded guilty to two counts of dishonestly using his position as an employee with the intention to gain an advantage for two clients.

ASIC alleged that Mr. Li, 37, used his position as an employee of GAIN Capital Australia Pty Ltd (GAIN Capital) contrary to Section 184(2)(a) of the Corporations Act 2001. The charges related to orders placed by Mr Li to gain an advantage for two clients. Mr Li's orders resulted in these clients obtaining profits of approximately $20,150 and $52,400 respectively. GAIN Capital has recovered the full amount of $72,550 from the clients' accounts.

GAIN Capital offered clients the opportunity to trade share price index (SPI) contracts for difference (CFDs) at the 'market-on-open' price, i.e. a price corresponding with the price at which SPI matched during the opening auction at 9:50am.

ASIC alleged that:

  • between 9 April 2015 and 19 June 2015, Mr Li used his position as an employee of GAIN Capital to manually enter 13 profitable Market-on-Open Orders in SPI CFDs on the account of another person, with the intention of gaining a financial advantage for that person, and
  • between 26 May 2015 and 10 July 2015, Mr Li used his position as an employee of GAIN Capital to manually enter 38 profitable Market-on-Open Orders in SPI CFDs on the account of another person, with the intention of gaining a financial advantage for that person.

ASIC acknowledges GAIN Capital's cooperation and assistance in this matter.

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

Background

The maximum penalty for a person contravening s184(2)(a) of the Corporations Act 2001 is a fine of $360,000 or imprisonment for 5 years, or both.

Last updated: 30/03/2021 09:33