A Queensland man is facing up to a decade in jail after pleading guilty to 2 charges relating to insider trading of an ASX-listed company.
Jin Xi Li of Caloundra, Queensland appeared in the Brisbane District Court to plead guilty to one charge of trading while in possession of inside information.
He also pleaded guilty to a charge of getting his wife to trade while holding inside information.
Traded just before PanAust shares popped after acquisition
The charges related to copper producer PanAust Limited (ASX: PNA).
Back in 2015, the company was wholly acquired by Guangdong Rising HK (Holding) Limited and subsequently delisted from the ASX.
But just before this became public knowledge on 30 March 2015, Li is accused of buying 390,000 PanAust contracts for difference (CFDs) over a period of 8 days.
Li also allegedly bought a further 265,000 CFDs under his wife's name over 5 days.
The CFDs that Li and his wife bought were linked to the share price of PanAust.
After the acquisition was announced, Li and his wife's trading brought them a windfall of about $343,000.
Long court case could end with 10 years' jail
The maximum penalty for insider trading is currently 15 years imprisonment. However, at the time of Li's offences, a maximum of 10 years applied.
Li will face Brisbane District Court again on 28 February for sentencing.
The Australian Securities and Investments Commission originally started its investigations after its surveillance team identified suspicious trading.
The Li case has been through the courts since 2017.
