Former JP Morgan employee sentenced for insider trading
A former JP Morgan Chase employee and her friend have been sentenced by the District Court of New South Wales for engaging in insider trading.
Elisa Rietbergen, of Kensington, NSW, and Joseph Levi, of Surry Hills, NSW, were sentenced to 18 months imprisonment to be released immediately on their own recognisance in the sum of $1000, to be of good behaviour for two years.
Both Rietbergen and Levi pleaded guilty to insider trading charges brought by the Australian Securities and Investments Commission (ASIC).
The charges relate to inside information Rietbergen gained while with JP Morgan between about 21 and 27 April 2011. They concern the acquisition of Valad Property Group Limited by affiliates of the Blackstone Group LP, announced on the ASX on 29 April 2011.
Rietbergen tipped Levi with the information, which he used to acquire 40,000 Valad securities on 27 April 2011.
The court also took into account Levi's admission of encouraging his father, Eli Levi, to also acquire Valad securities. Eli Levi acquired 20,000 Valad securities on 27 April 2011, but it was not alleged that he was criminally involved.
In March 2012, Joseph Levi forfeited $24,280.28 to the Commonwealth under the Proceeds of Crime Act 2002.
ASIC deputy chair Belinda Gibson said the sentence demonstrated ASIC's commitment to taking action against gatekeepers in the financial sector who act dishonestly.
"Industry insiders have important responsibilities to act honestly, diligently and competently - not least, corporate advisers who must not take their client's confidential information and use it for their own benefit. Those who fail to take these responsibilities seriously risk the prospect of a criminal conviction," said Gibson.
"We've put more resources and energy into fighting insider trading and our determination is paying dividends as shown with another conviction today," she added.
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