Gregory Campbell – who worked as national development and construction manager at Healthe Care Australia – has been sentenced to 12 months imprisonment to be released immediately upon his own recognisance of $10,000 and fined $10,000 for one count of insider trading of ASX-listed operator Pulse Health Limited.
ASIC reported that on or around 19 October 2016, Mr Campbell received information from another executive team member at Healthe Care about a potential deal with Pulse. Knowing this information was not available to the public yet and would affect Pulse’s share price, Mr Campbell purchased 392,257 shares in Pulse for $127,384.26.
On 20 October 2016, Pulse entered a trading halt and announced the bid from Healthe Care to acquire all of its shares for $0.47 per share. On 21 October 2016, Mr Campbell sold his Pulse shares and returned a profit of $31,996.
“As a member of the executive team, Mr Campbell had access to privileged and market sensitive information. Mr Campbell traded while in possession of this inside information which gave him an unfair advantage,” ASIC deputy chair Sarah Court said.
“ASIC will continue to take action against insider trading wherever it occurs to ensure Australia’s financial markets are fair and promote investor confidence.”
As well as the fine, Mr Campbell was ordered to pay a pecuniary penalty representing the $31,996 made from the offence.
In the sentencing, Judge McInerney of the County Court of Victoria said Mr Campbell would have been handed a two-year imprisonment with no release upon recognisance had he not pleaded guilty.
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
