Founder Group CEO fined US$108m for in­sider trad­ing

The Myanmar Times - - International / Business -

A TECH­NOL­OGY com­pany CEO who may have given a Chi­nese politi­cian’s son the Fer­rari in which he crashed and died has been jailed for nearly five years and fined more than US$100 mil­lion for in­sider trad­ing.

A dozen for­mer ex­ec­u­tives of ma­jor Chi­nese tech­nol­ogy con­glom­er­ate Founder Group, in­clud­ing CEO Li You, were con­victed of in­sider trad­ing and other of­fences, said the intermediate peo­ple’s court in Dalian, in north­east­ern China.

Mr Li was sen­tenced to four and a half years in pri­son and fined 750.2 mil­lion yuan ($108.5 mil­lion), it said.

The Founder Group was es­tab­lished in 1986 with in­vest­ment from Pek­ing Univer­sity and has ex­panded into IT, health­care, real es­tate, fi­nance, and com­modi­ties trad­ing.

Ac­cord­ing to the Beijing News, Mr Li and Wei Xin, for­mer chair­man of the com­pany, were linked to fallen Chi­nese ex-pres­i­den­tial aide Ling Ji­hua, who was jailed for life in July for cor­rup­tion, il­le­gally ob­tain­ing state se­crets and abuse of power.

An ex-aide of for­mer pres­i­dent Hu Jin­tao, Mr Ling was brought down in the high-pro­file cor­rup­tion crack­down by cur­rent Pres­i­dent Xi Jin­ping that has de­posed sev­eral se­nior of­fi­cials for var­i­ous al­leged crimes.

Chi­nese me­dia have pre­vi­ously quoted re­ports say­ing that Mr Li gave Mr Ling’s son Ling Gu a Fer­rari.

Ling Gu was killed in a high­speed crash in Beijing in 2012, when two women pas­sen­gers, one of them naked, were in­jured, a scan­dal that helped trig­ger his fa­ther’s down­fall.

Ling Ji­hua asked for and ac­cepted over 6.43 mil­lion yuan from Mr Wei, Xin­hua news agency said, and was aware of pay­ments and gifts from Mr Wei to his son.

The Founder ex­ec­u­tives were charged with in­sider trad­ing, hid­ing financial in­for­ma­tion, and ob­struct­ing of­fi­cial business, with no ac­cu­sa­tions re­lat­ing to Mr Ling. –

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