Former CEO of UCL resources Christopher Jordinson faces up to 10 years in prison
Former CEO of Australian company UCL Resources Christopher Jordinson has admitted that he was participating in an insider trading scheme that involved his nephew and two other people. He tipped them off about an incoming takeover bid from Oman-based Mawarid Mining LLC earlier this year.
Back in March 2013 Mr Jordinson has communicated to his nephew Joe Turner that his company would be announcing that it has received a takeover offer and he even provided him with an exact timeframe by stating that shares should rise before the end of April.
Another participant in the scheme was Jonathan Breen, who got cash from the ex-CEO and instructions on what to do to trade shares on his behalf. when tipped off, Mr Breen has acted by purchasing 107,463 shares at an average price of 13 cents.
By the time the takeover deal was announced on the 23rd of April the shares of the company were trading at 31 cents, so the group has profited about $20000 from the trade. All of the parties involved have pleaded guilty with Mr Jordinson facing up to 10 years in prison and/or a fine of $765 000 dollars.
It all comes in the heels of yesterday’s announcement by ASIC that they have launched a more sophisticated mechanism, to track suspicious trading activity and detect fraudulent activities. Next court hearing is scheduled for the 13th of December.
For a link to the full press release visit ASIC’s website.