Insider trader sentenced
Jeffrey Peter Honey has been sentenced to six months’ home detention at the Auckland District Court, after pleading guilty to one charge of insider trading under the Financial Markets Conduct Act 2013, the Financial Markets Authority says.
Mr Honey admitted to being an information insider advising and encouraging another person to trade.
The insider trading charges relate to trading in shares of Eroad (NZX:ERD), a road user, compliance and commercial services company.
Mr Honey was a senior employee at Eroad when he sent text messages to another individual that contained confidential material information relating to Eroad’s performance in the period to 30 September 2015. Mr Honey also sent a text suggesting the other individual sell Eroad shares. That individual then traded 15,000 Eroad shares.
FMA General Counsel Nick Kynoch says the practice is unacceptable. “Insider trading erodes confidence and harms the integrity of our markets. Where we find examples of this kind of misconduct we will take action and use our enforcement powers to uphold the law.”
The other individual is also a defendant and faces one charge of insider trading under section 241 Financial Markets Conduct Act – namely, information insider must not trade. That person is yet to appear before the Court and has interim name suppression.
Last updated on the 16th September 2019