Insider trading: a crime with no time
A little remorse is all you need!
Last week, the County Court of Victoria imposed the latest extraordinarily lenient sentence for insider trading.
Way back in July 2021, Melbourne man Antonio Stella learned of a soon-to-be-announced share placement in Cann Group, a medicinal cannabis company he already owned shares in. Stella sold his existing shares for $954,886 then a week later, bought a similar number of shares back in the discounted placement – realising a net benefit of $225,447.
The Australian Securities and Investments Commission investigated, referred the matter to the Commonwealth Director of Public Prosecutions, and nearly four years later, Stella was indicted on insider trading charges.
On October 6, Stella was handed an 11-month prison sentence that was avoided in exchange for $1,000 and a 12-month good behaviour period. His financial penalty was $225,447 – that is, merely the repayment of his illicit gain.