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350 hours of community service for abuse of position

World Money Laundering Report
Securities fraud
Case Summary: 

An employee of a securities company placed orders relating to contracts for difference to gain an advantage for two clients at the expense of his employer.

Case Facts: 

Mr Shun Yuen Ken LI pleaded guilty to dishonestly using his position with GAIN Capital Australia Limited with the intention to make apparent gains. The company offered clients the a service by which share price index (SPI) contracts for difference (CfD) could be traded at the "market-on-open" price, that is a price matching that at which the SPI opened at 9:50 am.

It was alleged that during a three months period during 2015, LI manually entered more than 50 profitable Market-on-Open Orders on the account of two other people, intending that those people would gain a financial advantage.

GAIN Capital has been reimbursed the profits that the two earned, being approximately AUD20,150 and AUD52,400 respectively, a total of AUD72,550.

Case Judgment: 

LI pleaded guilty before the Downing Centre Local Court and was sentenced to 350 hours of community service.

Case Commentary: 

More evidence that threats often come from within.


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