Former Citic Pacific Executive Pleads Guilty to Insider Dealing
Citic Pacific Ltd. (267)’s former deputy head of finance Chui Wing Nin pleaded guilty to two counts of insider trading at his retrial and was sentenced to nine months in prison, Hong Kong’s securities regulator said.
Chui was also fined HK$612,000 ($78,800) and barred from being a company director in Hong Kong for three years at a hearing at the city’s Eastern Magistrates’ Court on Jan. 30, the Securities and Futures Commission said in a press release on its website yesterday.
In 2012, Chui was convicted and sentenced to 15 months and a HK$1 million fine after pleading not guilty to charges that he sold Citic Pacific shares in 2008 before the company issued a statement disclosing potential losses of as much as HK$15.5 billion from wrong-way currency bets.
Citic Pacific, a Hong Kong-based steelmaker controlled by China’s biggest state-owned investment company, fell 55 percent on Oct. 22, 2008 after its announcement. Chui sold a total of 81,000 shares on Sept. 9 and Sept. 12, according to the SFC.
Hong Kong’s Court of First Instance in September ordered a retrial for Chui, saying the trial magistrate hadn’t given adequate reasons for dismissing the defendant’s arguments concerning evidence given by an expert witness.