Morgan Stanley executive sentenced to 7 years in prison

Morgan Stanley is the parent company of Saxon Mortgage. Du Jun, former managing director of Morgan Stanley has been sent behind the bars for seven years by a Hong Kong court for insider trading. Du Jun has also been ordered to pay a fine of HK$23.3 million.

41-year old Du Jun was found to have reaped HK$33.4 million from trading stock in a Chinese state-owned investment firm while advising it on the acquisition of a Kazakhstan oil field.

Du Jun purchased stock of $11 million in Citic Resources, which is the arm of China’s largest state-owned investment company, Citic Group and sold half of the stock for the profit of $4.3 million after the deal was announced.

I hope he likes rice and water. Du is no longer employed by Morgan Stanley.