A Supreme Court jury has found Dr Stuart Alfred Fysh, a former executive vice-president with international energy company, BG Group Plc, guilty of two insider trading charges brought by ASIC.
ASIC Deputy Chairman, Belinda Gibson welcomed today’s decision which followed a four week trial of Dr Fysh. Dr Fysh was found not guilty of two further charges of insider trading.
The charges against Dr Fysh related to his purchase of 250,000 shares in Arrow Energy N.L (Arrow) in June 2007 and 250,000 in Queensland Gas Company Limited (QGC) in December 2007. ASIC alleged Dr Fysh was in possession of inside information relating to BG Group’s interest in Arrow and QGC at the time he purchased the shares. BG Group and QGC announced an A$870 million strategic alliance in February 2008. The Court heard Dr Fysh made a significant profit from the trades. He made approximately $640,000 from his trades in QGC shares.
Dr Fysh was found guilty of two charges relating to his trading in QGC shares and not guilty of two charges regarding the purchase of Arrow shares.
Deputy Chairman Gibson reiterated ASIC’s message to the market that it has the systems, the people and the powers to catch insider traders.
‘One of our key priorities is to promote fair and efficient markets. Bringing insider traders to account is imperative so that investors have confidence in the integrity of our market.’
Dr Fysh pleaded not guilty to all charges in April 2011 before the Downing Centre Local Court, and has since been on bail subject to a number of conditions including the surrender of his passports to ASIC. Dr Fysh was later arraigned in the Supreme Court of New South Wales (11-73AD).
Dr Fysh was based in London at the time of the alleged trading but has lived in Melbourne since being charged and having his passports removed by Court order. The BG Group headquarters are located in London.
Justice McCallum will sentence Dr Fysh on a date to be fixed.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
Background
In December 2008, ASIC obtained interim asset preservation orders against Dr Fysh restraining him from dealing with funds which related to his trading in Arrow and QGC shares (08-85AD). These orders continued until December 2009 at which time the Commonwealth Director of Public Prosecutions obtained orders under the Proceeds of Crime Act 2002.
The orders prohibit Dr Fysh from dealing with funds subject to ASIC’s asset preservation orders and his interest in specified real property in Australia. The Australian Federal Police now has carriage of the proceedings under the Proceeds of Crime Act 2002.
