Mr Steven Robert Noske, of Subiaco, Western Australia has today been found guilty and convicted on one count of insider trading brought by ASIC after a two week trial in the Western Australian Supreme Court.
The charge related to the acquisition of 750,000 WestSide Corporation Limited shares between 6 and 10 February 2012 via a trading account associated with Mr Noske.
ASIC alleged that Mr Noske was in possession of inside information relating to a proposed takeober of WestSide Corporation Limited by LNG Limited at the time he traded. Mr Noske was alleged to have come into possession of the inside information while he was being consulted by the Managing Director of LNG Limited on some aspects of the proposed deal.
The price of WestSide Corporation Limited shares increased by nearly 60% following the announcement of the proposed takeover.
ASIC Commissioner John Price said:
Mr Noske’s conviction today is a timely reminder for professionals who come into possession of market-sensitive information as a result of their work to take particular care in how they communicate and act upon such information. Trading in shares while in possession of inside information is a criminal offence. ASIC has the systems and expertise to detect and pursue insider trading, even where the subject matter is commercially complex, and will ensure those who flout the law are brought to account.
Mr Noske has been bailed to appear for a sentencing hearing in the Supreme Court of Western Australia on 20 April 2017. He faces a maximum penalty of up to 10 years imprisonment and/or a fine of up to three times the value of the profit attributable to the alleged offending, as per the Corporations Act.
The case was prosecuted by the Commonwealth Director of Public Prosecutions.