Asset Recovery: Aus grabs insider trading profits
In April 2008, the Brisbane District Court issued orders under section 18 of the Proceeds of Crime Act 2002 (Cth) which effectively restrained the 418,148 Queensland Gas shares purchased by Mr Mukesh Panchal who has now pleaded guilty to four offences of insider trading.
Panchal, of Hawthorne, Queensland, was charged with contravening sections 1311(1) and 1043A(1) of the Corporations Act following his purchase of more than 400,000 Queensland Gas shares valued at over AUD1.3 million between 15 January and 1 February 2008. Panchal bought the shares while in possession of inside information about an AUD870 million alliance with British-based BG Group Plc. This information, had it been generally available, would have had a material effect on the price or value of Queensland Gas shares.
Panchal’s employment with Queensland Gas was terminated by the company on 28 February 2008. Queensland Gas fully co-operated with ASIC throughout its investigation.
In October 2008 under section 116(i) of the Proceeds of Crime Act 2002 (Cth) the Brisbane Court orderd Panchal to pay a pecuniary penalty to the Commonwealth of AUD322,155.50, being an estimate of his gain. Panchal has paid this penalty and his shares in Queensland Gas have been released to and have been disposed of by Panchal.
He will be sentenced on 15th April 2009.
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