Former chairman and director of Gunns Limited, John Gay, has been fined $500,000 by ASIC for insider trading.
John Gay, the former chairman and director of Gunns, has been ordered to pay a $500,000 pecuniary penalty relating to his conviction for insider trading in 2013, a statement issued by ASIC said.
ASIC commissioner Cathie Armour said an important part of maintaining market integrity is deterring misconduct by individuals who may deem the risks as worth taking.
“ASIC is committed to ensuring that the proceeds of the crime of insider trading, including any profits derived or losses avoided, are pursued,” she said.
Mr Gay was convicted of insider trading on 23 August 2013 on criminal charges brought by ASIC and prosecuted by the Commonwealth Director of Public Prosecutions (CDPP).
CDPP deputy director Shane Kirne said the proceeds settlement reflects the severity of the offence.
“The interests of justice have been met because Mr Gay has been made to disgorge his benefit resulting from trading his shares when he should not have, regardless of the motivation behind the selling of his shares.
“Those that choose to illegally benefit through insider trading should expect to face the full force of the law,” he said.
Following his criminal conviction in 2013, the CDPP with assistance from ASIC commenced civil proceedings against Mr Gay, the statement said. On 7 December 2015 Mr Gay agreed to pay a $500,000 pecuniary penalty within 120 days, and on 11 December 2015 an order to this effect was made by the overseeing Justice.
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