Fresh From The Cupboard, page-99

https://thewest.com.au/business/energy/noske-found-guilty-of-insider-trading-ng-b88435116z


A Supreme Court jury this afternoon convicted one-time Mitsui gas asset manager Steven Noske of insider trading relating to a takeover bid for a partner in a Queensland gas project.
The jury spent more than seven hours to reach its verdict on allegations that Mr Noske insider traded with information about a proposed takeover bid for Westside by Maurice Brand’s Gladstone gas processing company Liquified Natural Gas Ltd.
Mr Noske has been bailed to appear for a sentencing hearing on April 20. He faces a maximum penalty of up to 10 years imprisonment and/or a fine of up to three times the value of the profit from the trading.
The verdict came after the jury asked for a refresher of evidence about what was discussed between Mr Noske and Mr Brand before a Friday afternoon meeting Mr Noske had with former Mitsui colleague Previnder Bahr.
Mr Noske helped suitor LNGL shortly after leaving Mitsui in mid-2011, and had a series of conversations with Mr Brand after the gas processor lodged an expression of interest for a takeover bid with Westside early in February 2012.
Mr Brand testified he told Mr Noske of the bid proposal on Friday, February 3, 2012, and wanted the former Mitsui worker to find out more information about the Japanese-owned group’s attitude ahead of meetings the following week.
Mr Noske denied knowing about the LNG bid proposal or a plan to move to take control when he lodged an buy order for 750,000 Westside shares. He lodged the order with broker JBWere on the morning of February 6, 2012, about 10 hours after his last email communication with LNGL boss Mr Brand.
Mr Noske wrote in that email to Mr Brand that Mitsui might try to stifle any Westside takeover using others, possibly Vale or Santos.
He told Mr Brand he should “aggressively pursue your biz plan” and “move to take control of Westside”. “I see control of Westside as key,” Mr Noske wrote. “Molopo is a lesser priority.”
Defence lawyer Tom Percy told the jury that it was nothing more than an ambiguous references to gas access arrangements involving Westside and Molopo, which owned a nearby project.
“There is not one skerrick of evidence in this case he knew of the takeover proposal,” Mr Percy said.
The barrister rejected Mr Brand’s evidence he told Mr Noske of the bid proposal at the Friday meeting and pointed to Mr Noske’s evidence that Mr Brand had uttered a throwaway line to the effect: “I might as well make a bid for it.”
“He was told nothing more – a throwaway line at best,” Mr Percy said.
ASIC Commissioner John Price today said Mr Noske's conviction was a timely reminder for professionals with market-sensitive information to take particular care in how they communicate and act upon such information.
“Trading in shares while in possession of inside information is a criminal offence,” Mr Price said. “ASIC has the systems and expertise to detect and pursue insider trading, even where the subject matter is commercially complex, and will ensure those who flout the law are brought to account.”