Former Lonsec managing director charged with insider trading
Norman John Graham, a former managing director of stockbroking firm Lonsec, has appeared in the Magistrates' Court of Victoria in Melbourne, charged with 14 counts of insider trading.
The charges have come after an Australian Securities and Investments Commission (ASIC) investigation alleged that in the course of advising seafood distributer Clean Seas, Graham received inside information on the company and subsequently disposed of a number of securities invested in the enterprise.
According to ASIC, on 1 and 23 February 2010, Graham disposed of a total of 286,407 shares across various related accounts when he had information on the company's kingfish growth and financial results; 400,000 shares on a client's account between 12 and 23 February 2010 when he had access to similar knowledge; and a total of 200,000 shares on two client accounts on 26 February 2010 when he had access to information on Clean Seas' kingfish growth, financial results and the death of its Bluefin Tuna fingerlings.
"This trading was prior to the release of Clean Seas' half-year results on 26 February 2010, after which time, the share price fell substantially," ASIC's release read.
At the time of the alleged offence was committed, the maximum penalty associated with an insider trading offence was five years imprisonment and/or a fine of $220,000 for each offence.
Graham was not required to enter a plea and the matter has been adjourned for a committal mention in the Melbourne Magistrates' Court on 6 August 2012.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
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