Mr Norman John Graham, the former Managing Director of stockbroking firm, Lonsec Limited, appeared today in the Magistrates’ Court of Victoria in Melbourne, charged with 14 counts of insider trading, following an ASIC investigation.
ASIC alleges that in the course of advising Clean Seas Ltd (Clean Seas), Mr Graham received inside information about Clean Seas, and while in possession of that inside information, Mr Graham disposed of securities in Clean Seas as follows:
- on 1 and 23 February 2010, Mr Graham disposed of a total of 286,407 shares across various related accounts at a time when he had inside information relating to Clean Seas’ kingfish growth and its financial results
- between 12 and 23 February 2010, Mr Graham disposed of 400,000 shares on a client’s account at a time when he had inside information relating to Clean Seas’ kingfish growth and its financial results
- on 26 February 2010, Mr Graham disposed of a total of 200,000 shares on two client accounts at a time when he had inside information relating to Clean Seas’ kingfish growth, Clean Seas’ 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.
Mr Graham was not required to enter a plea. The matter has been adjourned for a committal mention in the Melbourne Magistrates’ Court on 6 August 2012.
ASIC’s investigation arose from a referral from the Australian Securities Exchange.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
Background
At the time of the alleged offence, the maximum penalty associated with an insider trading offence was five years imprisonment and/or a fine of $220,000 for each offence.
