Photo: 123rf
A former bank accountant has been sentenced on charges of insider trading.
Kevin Young, who was a treasury accountant with publicly-listed Heartland Bank, has been sentenced to six months' home detention and ordered to pay a fine of $11,241 at the Auckland District Court.
He faced three charges relating to insider trading brought against him by the Financial Markets Authority.
The FMA said Young bought Heartland shares in August 2020, while holding material information that was not available to the public.
He sold them the following month and made a profit of $11,241.
In July 2020, Young also disclosed material information relating to Heartland Group that was not available to the public, to a former colleague, Pritesh Patel, knowing he would or was likely to buy Heartland shares.
In February 2021, Young also advised or encouraged another former colleague to hold onto their Heartland shares based on material information that was not public.
The FMA initially brought four charges against Young, and he pleaded guilty to three charges in December last year, with the Authority withdrawing one charge.
FMA head of enforcement Margot Gatland said the sentence was a warning to those looking to exploit the system.
"The court's ruling demonstrates that such behaviour will not be tolerated, and individuals who commit insider trading will be held to account for their actions," Gatland said.
"Insider trading is a serious offence that undermines investor confidence in the New Zealand markets and gives individuals an unfair advantage."
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