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Ex-Morgan Stanley banker gets 7 yrs jail in HK

(Agencies)
Updated: 2009-09-18 17:01

Du Jun leaves the District Court after a hearing in May. [Bloomberg News]

HONG KONG: An ex-Morgan Stanley banker was sentenced Friday to seven years in prison in Hong Kong's biggest insider trading case.

Du Jun, a former managing director of the New York-based investment bank, also was fined about HK$23 million ($3 million).

It was the maximum sentence Du faced after being convicted last week on nine counts of insider dealing in the shares of Citic Resources Holdings Limited before the company's announcement of an acquisition in 2007. He was also convicted of a tenth related charge for helping his wife to deal in the shares.

He reportedly reaped about HK$33 million ($4.3 million) from his illegal trades.

The case marks the 10th conviction of insider trading since it was made a criminal offense in 2003, part of Hong Kong's effort to tighten regulation as it seeks to retain its status as a leading financial center.

It is also the longest and most heavily contested trial on insider dealing in the territory, according to Hong Kong regulators.