Data loading...

VIET SEAFOOD

Stockbroker Convicted Of Insider Trading With Tuna Shares Australia, May 22, 13

The former head of stockbroking firm Lonsec was today convicted of insider trading with the shares of a tuna firm.

Norman John Graham sold shares in the listed fishery company Clean Seas Tuna knowing that the company was set to announce a loss of more than AUS$10 million for the six months to December 2010.

Mr. Graham was also aware that Clean Seas’ last infant Southern Bluefin Tuna stock had died.

On 26 February 2010, Clean Seas Tuna announced a AUS$ 14.2 million loss and revealed that its oldest southern bluefin tuna had survived just five weeks.

Hours before that announcement, Graham sold 200,000 Clean Seas shares on behalf of two clients.

Mr. Graham, 53, of Barwon Heads, pleaded guilty to two charges of insider trading in March 2013 (refer: 13-039MR).

In sentencing Mr. Graham at the County Court of Victoria, Allen J said: “There are clearly victims of insider trading. The market itself is a victim; any such offences result in the loss of confidence and the loss of the efficacy and integrity of the market. Those who held the shares and did not sell were victims.”

Allen J also remarked Lonsec itself potentially suffered damage to its reputation.

Mr. Graham was convicted of the two charges of insider trading and fined AUS$ 30,000.

ASIC Commissioner John Price said: “Prosecuting insider trading has been a real focus for ASIC. In the last four years we have obtained convictions of 17 persons, and there are six cases waiting to be heard.”

“ASIC’s systems, its people and investigatory powers allow us to catch insider traders and to achieve fairness in the marketplace.”
/