Two Sydney men have pleaded guilty to insider trading after using inside information to trade shares of resources company UCL Resources earlier this year.
The two men, along with another person, pocketed $20,000.
An investigation by the Australian Securities and Investments Commission (ASIC) found Joe Turner, 23, received information that before the end of April 2013, UCL would announce it had received a takeover offer from Oman-based Mawarid Mining LLC.
Turner then passed on the information to Jonathan Breen, 29, along with money and instructions to buy UCL shares on his behalf. Breen did so on 11 April.
Both men admitted the information was price-sensitive and was not widely available when they appeared in Downing Centre Local Court.
The men from Redfern and Chiswick respectively, face a maximum of 10 years in jail and/or a fine of $765,000.
ASIC noticed the insider trading in April and referred it to its markets enforcement team for investigation and action.
Turner and Breen were released on conditional bail, with the case to return to the Sydney District Court on 8 November for arraignment.
The Commonwealth Director of Public Prosecutions is prosecuting the case.
