Former managing director of stockbroking firm, Lonsec Limited, has pleaded guilty to two charges of insider trading, the Australian Securities and Investments Commission said in a statement.

The charges relate to an order John Graham placed on 26 February 2010 to sell a total of 200,000 shares in Clean Seas Tuna Ltd across two client accounts. At the time, Graham was managing director of Lonsec.

On 25 February 2013, the matter proceeded before the Melbourne Magistrates’ Court as a contested committal hearing. On 28 February 2013, Graham pleaded guilty to two charges of insider trading.

Graham was charged in June 2012. ASIC alleges at the time he sold the shares on the two client accounts, he possessed the following inside information:

1, Clean Seas Tuna had suffered a financial loss in the December 2009 half year period of more than $10 million, with the loss to be announced to the market on 26 February 2010, and that

2, the Southern Bluefin Tuna fingerlings had died.

This trading was prior to the release of Clean Seas Tuna’s half-year results on 26 February 2010, after which time, Clean Seas Tuna's share price fell substantially, ASIC said.

Graham has been bailed to appear for a plea hearing in the County Court of Victoria on 16 May 2013.
The matter is being prosecuted by the Commonwealth director of public prosecutions.

Crack down

According to the statement, since 1 January 2009, ASIC has prosecuted 26 insider trading actions. Of those, 17 have been successfully prosecuted, comprising 13 matters finalised and four guilty pleas where the individuals are awaiting sentencing. Seven individuals are awaiting trial and are contesting their charges, while two matters have been unsuccessful.