Wednesday, 19 December 2012 14:53
A former senior executive of global gas company BG Group has been jailed for two years after being found guilty of insider trading in Australia.
Stuart Fysh, a former vice president of BG Group, was jailed on Wednesday after a Supreme Court jury in November found him guilty of two counts of insider of trading.
Dr Fysh made a $640,000 profit after buying 250,000 shares in Queensland Gas Company (QGC) in December 2007.
The Australian Securities and Investments Commission (ASIC) had alleged Dr Fysh had inside information relating to BG Group's, formerly known as British Gas, interest in QGC when he bought the shares.
BG Group and QGC announced an $870 million strategic alliance in February 2008.
Dr Fysh bought the QGC shares at an average price of $3.19 a share and in November 2008 sold 250,000 shares at $5.75 each, resulting in a net profit of $640,000.
At the time of the trades he was based in London, but lived in Melbourne after being charged by Australian police.
He was found guilty of two charges relating to his trading in QGC shares.
Dr Fysh was ordered by Justice Lucy McCallum to spend at least 12 months in jail before being eligible for parole.
He has also been ordered to pay a fine of $640,857.18 as a result of separate proceedings conducted by the Australian Federal Police under the Proceeds of Crime Act.
He will also be disqualified from managing a corporation in Australia, including acting as a company director, for five years once he is released from jail.
ASIC deputy chairman Belinda Gibson said the case should serve as a warning to corporate Australia that using inside information for personal gain is a serious offence that cannot be tolerated.
"The jailing of Dr Fysh reflects the very serious consequences of insider trading," she said in a statement.
"ASIC will continue to use its systems, people and powers to catch insider traders and to achieve fairness in the marketplace."
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