Two Lyon former employees sentenced to 6 months and 1 years of insider trading respectively

In the insider trading case involving the media bole (privatized), two accused former investment banker Mr Lam was and former fund manager Fang Renhong pleaded guilty to a charge earlier this month and were sentenced to 6 months and 12 months ' imprisonment respectively at the District Court, respectively, to produce profits from insider trading.　　Fined $69,000 and $1.3722 million respectively.　　Mr Lam was jailed for six months Fang Renhong imprisonment for 1 years Mr Lam was as the former investment bank director of Lyon (CLSA Equity Capital Markets Ltd), Fang Renhong as the former Investment Portfolio fund manager of Hsz (the Kong) Ltd.　　Two people in early July after pleading guilty has been still in custody, so far nearly two weeks, but in the smell of the Mr Lam was, has been showing the calm of the mood, also revealed disappointment; As for Fang Renhong heard sentencing has been frowning, after hearing the real-time eyes red.　　According to Hong Kong media reports, although two defendants pleaded guilty and, on behalf of their lawyers, said that two persons would not be able to rejoin the financial industry upon conviction, they had requested a social service order or a reprieve, but the District Court Judge Yezzowen quoted Hong Kong and overseas cases as saying that imprisonment was an appropriate sentence. The judge pointed out that Fang Renhong's case was more serious because he was a fund manager but violated fiduciary duties, so the judge ordered the SFC to take disciplinary action against Fang Renhong.　　The judge sentenced Fang Renhong to 12 months ' imprisonment after 21 months as the starting point for sentencing, deduction of plea factors such as confession and charitable donation. As for the disciplinary action, the SFC did not respond yesterday.　　However, the figures show that two defendants are not registered with the SFC. The case revealed that the media bole in September 2005 was announced by the French advertising company de Gauberden to buy, Lyon was JCDecaux's financial advisor. Mr Lam was, who did not participate in the transaction, heard the information in the office and notified Fang Renhong through 3 emails. Fang Renhong in the same year from July to September, for the fund and he himself to buy the media bole shares. After the news, the media bole stock price rose, Fang Renhong also immediately sell goods, its fund profits 3.39 million yuan, own profit 1.0265 million yuan.　　As for Mr Lam was's wife, the fund, which has invested in Fang Renhong management, has profited indirectly from the transaction by 69,000 Yuan. Since the SFC commenced a criminal prosecution against insider trading last year, the defendants were sentenced to imprisonment or social service orders (see table) respectively, with the successful prosecution of 4 insider trading cases.