A former Australian executive faces up to a decade behind bars for allegedly trading stocks on inside information he learned while jogging with a friend in the Sydney CBD, making around $600,000 in profit.
The corporate regulator ASIC released a statement saying Michael Hull, 39, of Cronulla in New South Wales, had appeared before the Downing Centre Local Court charged with insider trading offences, which allegedly occurred between 2008 and 2011.
ASIC confirmed Hull was a finance executive with an infrastructure investment firm, though didn’t release any details on how the inside information was communicated.
However, The Australian Financial Review says Hull was employed at Infrastructure Capital Group, and that he went jogging in The Domain with a friend who was an analyst with investment bank Credit Suisse at the time, and who worked on large transactions for listed companies.
It is not clear, according to the Fin’s report, whether the other party is accused of providing specific tips, or general information on the companies, and he is still under investigation.
Capital group and Credit Suisse both declined to comment.
ASIC says the maximum penalties associated with the alleged offences range from five years imprisonment and/or a fine of $220,000 up to 10 years imprisonment and/or a fine of $450,000.
The agency is also seeking to recover the profit it says was made on the trades through a proceeds of crime application lodged with the Australian Federal Police.
There’s more here.
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