14. December 2011 12:18
11-296AD Former Gunns chairman charged with insider trading
Tuesday 13 December 2011
Former Gunns Limited (Gunns) chairman, John Eugene Gay appeared in the Court of Petty Sessions in Launceston today charged with two counts of insider trading, following an ASIC investigation.
The matter was adjourned until 14 February 2012. Mr Gay will be required to enter a plea at this time.
Mr Gay was a director of Gunns Limited from 1980 to 2010 and was chairman of Gunns Limited from 2002 to 2010.
ASIC alleges that on December 2 and 4, 2009, while in possession of inside information relating to the financial performance of Gunns, Mr Gay sold more than 3.4 million Gunns shares. This trading was prior to the release of Gunns’ half year results on 22 February, 2010. Following this release, the Gunns share price fell substantially.
ASIC alleges Mr Gay possessed information that he knew or ought to have known was not generally available at the time of the sale, and if the information had been generally available, a reasonable person would expect it to have a material effect on the price or value of the shares.
The matter was referred to ASIC by the Australian Securities Exchange, before ASIC assumed responsibility for market supervision.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.