Guilty plea on insider trades

A BARWON Heads stockbroker has pleaded guilty to two charges of insider trading.
Norman Graham, the former managing director of stockbroking firm Lonsec Limited, admitted to selling 200,000 shares in a company using inside information, according to Australian Securities and Investments Commission (ASIC).
ASIC said the charges related to an order Mr Graham placed on 26 February, 2010, to sell the shares in Clean Seas Tuna across two client accounts while still serving as Lonsec’s managing director.
ASIC alleged Mr Graham knew when he sold the shares that Clean Seas Tuna was about to announce a financial loss of more than $10 million.
He also knew that the company’s southern bluefin tuna fingerlings had died, with both events lowering the company’s share price, ASIC alleged.
Mr Graham was bailed to appear for a plea hearing in Victorian County Court on 16 May.
Commonwealth Director of Public Prosecutions is prosecuting the case against him.
Mr Graham was no longer a director of Lonsec, ASIC said.
ASIC records show that Financial Research Holdings bought Lonsec in June.
Financial Research Holdings is a consortium under the leadership of private equity specialist Mark Carnegie, with SuperRatings as a part owner.
Records also reveal at least seven directors and senior office holders left Lonsec between late 2010 and late 2011.
The Independent does not suggest any of the resignations were linked to the ASIC investigation or that serving Lonsec directors and employees were subject to ASIC proceedings.