10/12/2013 - 12:40

Perth man fined for insider trading

10/12/2013 - 12:40

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A former Perth commercial analyst has been fined after pleading guilty to one count of insider trading related to the takeover of MacArthur Coal by Peabody Energy Corporation in 2011.

A former Perth commercial analyst has been fined after pleading guilty to one count of insider trading related to the takeover of MacArthur Coal by Peabody Energy Corporation in 2011.

David Thien Anh Luong was sentenced on Friday in the Perth District Court after an investigation by the corporate watchdog.

The Australian Securities and Investments Commission said Mr Luong had purchased more than 4,000 shares in MacArthur Coal while in the posession of important information concerning the takeover.

He was fined $30,000 and agreed to a pecuniary penalty order under the Proceeds of Crime Act in the amount of just more than $15,000.

Mr Luong's conviction was the third handed down in relation to ASIC's investigation into the matter but the first Perth-based conviction.

Former Royal Bank of Canada banking associate John Kay Jin Khoo was earlier this year sentenced to a minimum of 14 months in jail.

Mr Khoo has appealed against the severity of his sentence.

Former day trader Matthew Tan was meanwhile fined $40,000 for his role in the matter.

"Insider trading is a difficult, complex matter to successfully prosecute," ASIC commissioner Cathie Armour said.

"The sentencing of these three men shows that ASIC has the people, the power and the systems in place to ensure those who engage in this type of behaviour are dealt with."

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