March 28 (Bloomberg) -- Andy Lam, an accounting manager convicted of insider trading, is no longer employed by Chinese Estates Holdings Ltd., the developer controlled by billionaire Joseph Lau said today.

The problem relates to “his personal conduct,” the spokeswoman Alison Yeung said in response to an e-mailed sent yesterday seeking comment.

In August 2007, Lam, an accountant at a subsidiary of the Hong Kong developer, learned of a proposed asset swap between Chinese Estates and Chi Cheung Investment Co., according to a statement posted yesterday on the Securities and Futures Commission’s Web site. He allegedly bought shares in Chi Cheung for his and his wife’s accounts before the proposal was publicly announced.

Chi Cheung’s share price surged about 30 percent after the announcement. Lam and his wife Fung Lai Sha made a profit of HK$209,000 ($26,966), or 140 percent, from the trades.

Lam was convicted on two criminal charges of insider dealing and remanded in custody pending sentencing on April 20, the commission said. His wife, who faced two charges, was acquitted.

Lam’s was the third criminal conviction for insider trading secured by the commission in the last 12 months, Mark Steward, executive director of enforcement, said in the statement.

To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net

Last Updated: March 28, 2009 02:49 EDT