Mr David Thien Anh Luong of Innaloo, Perth was fined $30,000 and also ordered to pay the $15,002.94 profit he made to the Commonwealth.
Mr Luong admitted to possessing inside information concerning the takeover of MacArthur Coal Ltd by Peabody Energy and ArcelorMittal S.A, which he used to purchase shares and contracts for difference between 7 and 12 July 2012.
Shares in MacArthur Coal surged 36 per cent on 12 July 2012 on the back of the public release of the takeover bid by Peabody and ArcorMittal, enabling Mr Luong to profit.
Two other men have already been convicted, following ASIC’s investigation into trading activities surrounding the takeover of MacArthur Coal.
In August, Mr John Khoo was sentenced to a 23-month jail term for communicating inside information about the takeover to former day trader Mr Jia Tan and one other. At the time, Mr Khoo had been working for the Royal Bank of Canada on the proposed acquisition.
Mr Tan was convicted in April of using the information Mr Khoo provided him to purchase contracts for difference, which netted him profits of $39,820. He was sentenced to 200 hours community service, fined $40,000 and order to pay his profits to the Commonwealth.
ASIC commissioner Cathie Armour said, “Insider trading is a difficult, complex matter to successfully prosecute. 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.”
