MR No. 2017 – 14
11 April 2017
An individual today pleaded guilty at the Auckland District Court to one charge of insider trading under section 243 Financial Markets Conduct Act - namely, being an information insider advising or encouraging another person to trade.
That defendant will be sentenced at the Auckland District Court on 13 June 2017 at 2.15pm.
The FMA has agreed to withdraw two obstruction charges under section 61 FMA Act.
FMA’s General Counsel, Nick Kynoch, said, “We are satisfied with this outcome. While obstructing the FMA is treated seriously, in this instance we have achieved our regulatory objectives with the defendant’s guilty plea to insider trading.”
The charges were filed in relation to trading in shares of Eroad (NZX:ERD).
The FMA alleges that an Eroad employee sent text messages to a former Eroad employee that contained confidential material information relating to Eroad’s performance in the period to 30 September 2015. That individual then traded 15,000 Eroad shares.
The other defendant faces one charge of insider trading under section 241 Financial Markets Conduct Act – namely, information insider must not trade. That defendant is yet to appear before the Court.
The Court today made an interim name suppression order until an application for permanent name suppression has been determined. In order for permanent name suppression to be granted, the Court must be satisfied that publication would cause extreme hardship.
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