The Australian Securities and Investment Commission said in a release that a Melbourne man has been sentenced to 18 months’ imprisonment for insider trading linked to mining company Kidman Resources and its takeover by Wesfarmers.
ASIC: Melbourne Man Sentenced for Insider Trading in Kidman Resources Takeover Case
The regulator said Duncan Stewart pleaded guilty last year to purchasing more than $130,000 worth of Kidman shares in April 2019 while holding confidential knowledge of Wesfarmers’ bid.
He sold the shares after the deal was announced publicly in May 2019, realising a profit of nearly $65,000.
He was ordered to pay back the profit and will be released upon entering a two-year good behaviour bond, secured with a $10,000 recognisance.
Stewart also admitted knowing of a second, confidential Kidman takeover approach from Chilean miner SQM, and encouraged a relative to buy shares, though he was not sentenced for that conduct.
Judge Manova told the court that insider trading “shatters public confidence and undermines the integrity of Australia’s financial markets,” noting she would have imposed a longer custodial sentence had Stewart not pleaded guilty.
ASIC Deputy Chair Sarah Court said: “Insider trading is a serious corporate crime. A sentence of imprisonment is the most severe penalty a court can order and, in this case, is coupled with a financial penalty, automatic directorship disqualification for five years, and the general consequences of having a criminal record.”
The case was prosecuted by the Commonwealth Director of Public Prosecutions and forms part of ASIC’s 2025 enforcement priorities, which include strengthening the investigation and prosecution of insider trading.
