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Nanjinger Jailed in US for Insider Trading

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Google searches into insider trading have landed a Nanjing man in an American jail for 15 to 30 months. The imprisoned has also been ordered to forfeit $119,429 of the proceeds that were made as a result of his illicit trading.

Massachusetts Institute of Technology (MIT) research scientist, Yan Fei, 31, was arrested in Massachusetts in July 2017. He pled guilty to insider trading and on Monday 2 April, was sentenced to prison in Manhattan, Yew York.

It has been revealed that Yan had been working in cahoots with his wife, Wang Menglu, who at the time, was working as a corporate lawyer for a London-based firm. Yan admitted to insider trading in a mining company merger, on which his wife had been working at the time.

“Yan‘s guilty plea stemmed from his 2016 purchase of stock options in Stillwater Mining Co., just 3 weeks before South Africa’s Sibanye Gold announced a $2.2 billion takeover of the Colorado-based company. He got the insider information from his wife, Wang Menglu, an associate at Linklaters, a corporate law firm”, reported The Epoch Times.

Wang has not been criminally charged, however, Linklaters has stated she is no longer employed with the firm. Further investigations have revealed that Yan had used a brokerage account set up in his mother’s name, before he began illegally trading.

Yan’s fate was sealed when investigators, searching Yan’s computer, and in particular, his Internet browser’s history, found searches such as, “how sec detect unusual trade” and “insider trading with international account”. The search further revealed he read articles entitled, “U.S. Insider Trading Enforcement Goes Global” and “Want to Commit Insider Trading? Here’s How Not to Do It”.

The Chinese are no strangers to insider-trading related crime. In 2016, China’s so-called equivalent to Carl C. Icahn, Shanghai’s best known financier, Xu Xiang, owner of Zixi Investment, was arrested on his way home from Hangzhou. He pled guilty to insider trading at a Qingdao court and, at the time faced a decade in prison.

In 2018, Beijing-based Huang Guangyu, who, at one point, was China’s richest man, received 14 years in prison and a $600 million fine for insider trading. Not only was Huang convicted of insider trading, but he was also found guilty of bribing officials. Huang built Gome Electronics that in 2008 became China’s largest retailer of electronics.

A Baidu search, conduced at time of writing, has revealed that Chinese news is yet to report on yesterday’s sentencing of Nanjing research scientist Yan.

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