Washington Post

choi

(1) David S Hilzenrath, Ex-FDA Chemist Gets 5 Years in Prison for Insider Trading. Mar 5, 2012.
http://www.washingtonpost.com/bu ... QAj7DEtR_story.html

Quote:
"Cheng Yi LIANG[, 58, who pleaded guilty last year,] endured forced labor during China’s Cultural Revolution, earned a doctorate in the United States and built a life in Gaithersburg as a chemist at the Food and Drug Administration. He was also extraordinarily successful at playing the stock market.

"Liang reaped profits or avoided losses of almost $3.8 million from trading on confidential information about how drugs were faring in the FDA approval process. The scheme spanned almost five years and involved hundreds of trades and more than 20 stocks, the government said.

"He used accounts he set up in the names of friends and family members, including his son, his brother-in-law and his elderly parents. Many of the accounts were offshore, which helped Liang avoid taxes, the government said.

"He was supporting three households, including his elderly parents and in-laws in China, the defense said.

"The fallout from the case has taken a toll on his family, particularly a son, Andrew. Because Liang used brokerage accounts in his son’s name, the government said, Andrew Liang was arrested on accusations of securities fraud, his computer was seized, and he was later sentenced to just over a year in prison for possession of child pornography.

"The case has left him saddled with a $2.7 million civil judgment, on top of assets he has already forfeited, [Joseph L] Evans[, assistant federal public defender--his lawyer] said.

(2) Andrew Higgins, Fugitive Chinese Businessman Li Jun Details Struggle Over Power and Property. Mar 4, 2012
http://www.washingtonpost.com/wo ... QATIJqqR_story.html
(LI Jun, the self-exiled chairman of the Chongqing Junfeng Industrial Development Group)

Quote:

Li "has three daughters, one of whom is studying in Washington.

"Interrogators, he said, told him that he had upset Zhang Haiyang, a senior army officer in the region — and yet another princeling — whose relatives allegedly coveted the property [plots of undeveloped military land in Chongqing’s Shapingba District, for which he had paid nearly $80 million]. Zhang, whose wife is the offspring of a senior official, has since moved to Beijing and is now political commissar of the 2nd Artillery Corps, which controls China’s nuclear missiles.

My comment: Whether you have read the report in yesterday's Financial Time, there is no need to read the rest of the Post report.