Two Sydney men who collectively pocketed $20,000 by trading on inside information about resources company UCL could face up to 10 years jail and a fine of $765,000 after pleading guilty today.
The duo – 23-year-old Joe Turner and 29-year-old Jonathan Breen – faced the Downing Centre Local Court in Sydney today.
The case came from an ASIC investigation into shares that the pair bought on 11 April 2013. UCL was trading at $0.13 on that day, ahead of a 23 April trading halt, when UCL told investors of a takeover offer from Mawarid Mining.
Oman-based Mawarid proposed to buy all UCL shares at $0.31 a share.
Turner was aware that the deal would take place before the end of April, and passed the information, along with money and instructions to buy shares on his behalf, to Breen.
ASIC said today that the trading “was conducted for the benefit of Mr Breen, Mr Turner and another person” who was not named.
The two men have been released on conditional bail ahead of arraignment on 8 November.
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