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Friday 28 January 2022

22-010MR Caloundra man pleads guilty to insider trading

Mr Jin Xi Li, of Caloundra, Queensland, has pleaded guilty to two insider trading offences when trading in Contracts for Difference (CFD) of PanAust Limited (ASX: PNA).

Appearing before the District Court at Brisbane, Mr Li was arraigned and pleaded guilty to one count of trading while in possession of inside information and one count of procuring his wife to trade while in possession of inside information.

Mr Li pleaded guilty to trading in CFDs of PanAust while he was in possession of inside information relating to a takeover bid for PanAust by Guangdong Rising H.K (Holding) Limited (17-390MR).

Prior to the announcement made by PanAust on 30 March 2015 regarding the takeover bid, Mr Li:

  • acquired 390,000 PanAust CFDs between 19 March 2015 and 26 March 2015; and
  • procured his wife to acquire 265,000 PanAust CFDs between 22 March 2015 and 26 March 2015.

The total profits resulting from both Mr Li and his wife’s trading was approximately $343,000.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions after a referral from ASIC. It has been listed for sentence in the Brisbane District Court on 28 February 2022.

Background

At the time of the offences, the charges of insider trading contrary to sections 1043A(1)(d) and 1311(1) of the Corporations Act each carried a maximum penalty of 10 years imprisonment.

In March 2019, the maximum penalty for both offences was increased to 15 years imprisonment.

Editor's note:

On 28 February 2022, the matter was adjourned on a date to be fixed.

Editor's note 2:

On 1 March 2022, the matter was adjourned for sentencing on 4 March 2022. 

Editor's note 3:

The sentencing hearing was held on 4 March 2022. Judgment has been reserved. 

Last updated: 14/03/2022 08:57