Founder Group CEO fined US$108m for insider trading
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. –