Du Jun
Encyclopedia
Du Jun is a Chinese
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...

 businessman and financier
Financier
Financier is a term for a person who handles typically large sums of money, usually involving money lending, financing projects, large-scale investing, or large-scale money management. The term is French, and derives from finance or payment...

 with origins in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...

. He was known for his role as former managing director of the Wall Street investment bank Morgan Stanley
Morgan Stanley
Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....

 in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...

.

He was sentenced for a maximum seven years in prison in September 2009 and fined $
Hong Kong dollar
The Hong Kong dollar is the currency of the jurisdiction. It is the eighth most traded currency in the world. In English, it is normally abbreviated with the dollar sign $, or alternatively HK$ to distinguish it from other dollar-denominated currencies...

23.3 million (about US$3 million) for his part in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...

's biggest insider trading
Insider trading
Insider trading is the trading of a corporation's stock or other securities by individuals with potential access to non-public information about the company...

 case - an "unprecedented" scam a judge said undermined the integrity of the leading Asian financial center. He was convicted on nine counts on 10 September 2009 but pleaded "not guilty to all charges. He was also convicted of involving his wife in the scam.

Career

Du offered advice to China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...

's CITIC Resources, part of the CITIC Group, who wished to buy a Kazakh
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...

 oil field. He purchased stock from the company in return for this, later selling it and obtaining a profit of $33.4 million. According to the Securities and Futures Commission (SFC), Du purchased CITIC shares at least nine times in the early part of 2007. Upon discovery, he fled to China.

Arrest and trial

Du was arrested upon his arrival from Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...

 at the Hong Kong International Airport
Hong Kong International Airport
Hong Kong International Airport is the main airport in Hong Kong. It is colloquially known as Chek Lap Kok Airport , being built on the island of Chek Lap Kok by land reclamation, and also to distinguish it from its predecessor, the closed Kai Tak Airport.The airport opened for commercial...

 on 10 July 2008. He was taken to appear before Garry Tallentire, Principal Magistrate of the Eastern Magistracy, the following day, making his court debut in the process. He went on to appear in the country's District Court
District Court (Hong Kong)
The District Court is the lower court system in Hong Kong, having both criminal and civil jurisdictions. It is located in the Wanchai Law Courts, Wanchai Tower, 12 Harbour Road...

on 23 September 2008. The SFC froze $46.5 million throughout their investigation and police assistance also occurred. The trial took 38 days before drawing its conclusions. Judge Andrew Chan claimed Du was "driven by sheer greed". Taped conversations which Du had with other bankers showed him claiming to have “a lot of inside information”.

Conviction

As well as the prison sentence and fine, Du received a five-year ban from taking high-profile posts in any listed company or dealing in any further of the type of business which resulted in his conviction. He is also expected to pay $0.93 million costs incurred by the Securities and Futures Commission's investigation into his actions.

Reaction

CEO of the SFC, Martin Wheatley, has said that "This sentence sends the strongest possible message that insider dealing is not tolerated in Hong Kong and those found guilty can expect lengthy terms of imprisonment".
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