Two Aussies Plead Guilty of Insider Trading after Pocketing $180,000

According to an announcement by the Australian Securities and Investments Commission (ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term), a duo from Sydney pleaded guilty to accusations of insider trading after pocketing more than $180,000 from shares and CFDs.

The co-conspirators were exchanging sensitive information between August and November of 2006. Daniel Joffe worked at the time as an associate analyst with Moody’s rating agency and was passing along insider trading information to Nathan Stromer.

With the impeccable tips from Joffe, Stromer managed to net $184,408.20 from buying and selling shares and contracts for difference (CFDs) in securities of companies about to be, or likely to be, subject to takeover bids and price-sensitive announcements.

Three particular cases are mentioned in the ASIC announcement. Between August 1st and 8th Joffe obtained information about a prospective takeover of Auckland International Airport Ltd. (AIA) by Babcock & Brown Ltd. After the tip was passed over to Stromer, he acquired 29,580 shares of AIA.

The second case concerned Australian Wheat Board Ltd. (AWB) where Joffe communicated insider trading information relating to upcoming price-sensitive announcements between the 20th and the 27th of September, 2006. After receiving the information, Stormer sold short 135,000 AWB CFDs.

Lastly, between the 10th and 14th of November, 2006, information on a proposed takeover bid of Alinta Infrastructure Holdings Ltd. (AIH) by Alinta Ltd. was received by Joffe and transmitted to Stromer who acquired 962,000 CFDs in AIH.

After the insider trading guilty plea, the matter will return to the Supreme Court of New South Wales for the sentencing hearing on the 27th of April, 2015.