The corporate watchdog says former Hanlong Mining managing director Hui Xiao has pleaded guilty to insider trading involving two Perth resources companies.
Mr Xiao, also known as Steven Xiao and Jiayi Xiao, appeared in Central Local Court in Sydney today to plead guilty to 65 illegal trades in financial products related to Sundance Resources and Bannerman Resources in July 2011, while he was at the helm of Hanlong.
In July 2011, Hanlong made a $1.65 billion acquisition bid for Sundance, and a $145 million takeover bid for Bannerman.
Neither of the bids was successful.
Mr Xiao has been in custody since his arrest in Hong Kong in January last year, and was extradited to Australia in October.
He also admitted to a third ‘rolled up’ offence of insider trading involving 37 additional trades that are related to the other offences.
“Mr Xiao was initially charged with more than 100 counts of insider trading, including a separate charge for each alleged illegal trade,” the Australian Securities and Investments Commission said.
“Following a number of court hearings and appearances, the charges have now been rolled up, however Mr Xiao is admitting to all of the offending covered by the previous charges.”
Each charge carries a maximum penalty of 10 years' jail.
Mr Xiao will be arraigned in the Supreme Court on October 2. No application for bail was entered.
