In March this year Mr Graham, 53, pleaded guilty to two charges of insider trading related to the sale of 200,000 shares in fishery company Clean Seas Tuna on behalf of two clients.
According to the Australian Securities and Investments Commission (ASIC), Mr Graham was aware the company was set to announce a loss of more than $10 million for the six months to December 2010 and its last infant southern bluefin tuna stock had died.
“On 26 February 2010, Clean Seas Tuna announced a $14.2 million loss and revealed that its oldest southern bluefin tuna had survived just five weeks,” ASIC stated.
“Hours before that announcement, Graham sold 200,000 Clean Seas shares on behalf of two clients.”
In sentencing Mr Graham at the County Court of Victoria, Judge Duncan Allen said the victims were those holding shares in the company who did not sell, and the market itself.
“Any such offences result in the loss of confidence and the loss of the efficacy and integrity of the market,” he said.
The judge added that Lonsec had itself potentially suffered damage to its reputation.
Mr Graham was convicted of the two charges of insider trading and fined $30,000, according to ASIC.
ASIC Commissioner John Price said ASIC, in the past four years, has obtained convictions of 17 persons related to insider trading, with six more cases waiting to be heard.
“ASIC’s systems, its people and investigatory powers allow us to catch insider traders and to achieve fairness in the marketplace,” he said.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
