On 10 September 2009, a former managing director of Morgan Stanley Asia Ltd was found guilty in the District Court of nine counts of insider dealing and one count of procuring his wife to deal in shares of CITIC Resources Holdings during an M&A transaction in 2007. He received a prison sentence of seven years and a fine of $23,324,117. He was also banned for 5 years from a directorship or management position at any Hong Kong listed company, and from dealing in securities, futures, leveraged foreign exchange contracts, and collective investment schemes.
This follows the first conviction of insider trading as a criminal offence in July 2009 and the first jail sentence for insider dealing imposed in April 2009. It is so far the harshest penalty to have been imposed for insider trading in Hong Kong.