ASIC Charges Two Traders for Insider Trading
- In separate cases, two Australian traders have been found guilty of insider trading conspiracies.
Two Sydney-based traders have appeared in court charged with insider trading in two separate cases brought by the Australian Securities and Investment Commission (ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term).
Prison Sentence
The first case involves Michael Hull, a Sydney-based trader, who was sentenced to 17 months imprisonment after pleading guilty to the charge.
Hull had previously pleaded guilty to trading in the shares of Mac Services Ltd, Giralia Resources NL and Jabiru Metals Ltd while in possession of inside information between 8 September 2010 and 9 February 2011.
ASIC began an investigation into Hull's share trading in 2011, following a referral from ASIC's market surveillance team, and charged him with insider trading in 2014.
It was alleged that the inside information was conveyed to Hull by a friend who was employed in the investment banking department of a global financial services company which worked on major corporate transactions involving the companies.
ASIC Commission Cathie Armour commented: “Insider trading is a very serious crime and the penalties involved for those who may be tempted to take the risk are significant, through loss of reputation, employment opportunity and as this case demonstrates, imprisonment. ASIC is focused on deterring this conduct to provide confidence in the integrity of our financial markets, which is critical to the prosperity of almost all Australians."
Profits of More Than $1 Million
In the second case, Oliver Curtis, another Sydney-based trader, was found guilty after a three week trial of conspiring to commit an insider trading offence.
The offence related to an alleged agreement between Curtis and convicted insider trader and tipper Mr John Hartman. It was alleged that as part of this agreement, Curtis traded on 45 separate occasions between 1 May 2007 and 30 June 2008 using a company he controlled and made a total profit of over $1 million.
Hartman was at the time employed as an Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term dealer at Orion Asset Management Ltd. It was alleged that both men agreed that Hartman would procure Curtis to trade in contracts for difference (CFDs) on the basis of inside information that Hartman possessed about Orion’s trading intentions.
The pair allegedly sought to take advantage of expected movements in the share price caused by Orion’s trading and share the profits. In return for providing trading instructions, Curtis was said to have provided Hartman with a share of the profits in the form of cash and by using the funds to purchase items for Hartman.
Curtis faces a maximum of five years imprisonment and/or a fine of $220,000. Hartman pleaded guilty to insider trading offences on 6 April 2010 and was sentenced to three years imprisonment.
Two Sydney-based traders have appeared in court charged with insider trading in two separate cases brought by the Australian Securities and Investment Commission (ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term).
Prison Sentence
The first case involves Michael Hull, a Sydney-based trader, who was sentenced to 17 months imprisonment after pleading guilty to the charge.
Hull had previously pleaded guilty to trading in the shares of Mac Services Ltd, Giralia Resources NL and Jabiru Metals Ltd while in possession of inside information between 8 September 2010 and 9 February 2011.
ASIC began an investigation into Hull's share trading in 2011, following a referral from ASIC's market surveillance team, and charged him with insider trading in 2014.
It was alleged that the inside information was conveyed to Hull by a friend who was employed in the investment banking department of a global financial services company which worked on major corporate transactions involving the companies.
ASIC Commission Cathie Armour commented: “Insider trading is a very serious crime and the penalties involved for those who may be tempted to take the risk are significant, through loss of reputation, employment opportunity and as this case demonstrates, imprisonment. ASIC is focused on deterring this conduct to provide confidence in the integrity of our financial markets, which is critical to the prosperity of almost all Australians."
Profits of More Than $1 Million
In the second case, Oliver Curtis, another Sydney-based trader, was found guilty after a three week trial of conspiring to commit an insider trading offence.
The offence related to an alleged agreement between Curtis and convicted insider trader and tipper Mr John Hartman. It was alleged that as part of this agreement, Curtis traded on 45 separate occasions between 1 May 2007 and 30 June 2008 using a company he controlled and made a total profit of over $1 million.
Hartman was at the time employed as an Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term dealer at Orion Asset Management Ltd. It was alleged that both men agreed that Hartman would procure Curtis to trade in contracts for difference (CFDs) on the basis of inside information that Hartman possessed about Orion’s trading intentions.
The pair allegedly sought to take advantage of expected movements in the share price caused by Orion’s trading and share the profits. In return for providing trading instructions, Curtis was said to have provided Hartman with a share of the profits in the form of cash and by using the funds to purchase items for Hartman.
Curtis faces a maximum of five years imprisonment and/or a fine of $220,000. Hartman pleaded guilty to insider trading offences on 6 April 2010 and was sentenced to three years imprisonment.