Fined $12,000 for failing to disclose a ‘relevant interest’ when trading listed securities, former Deloitte partner Mark Stephen Talbot negotiated his way out of prosecution for insider trading. Paying Financial Markets Authority a $150,000 penalty and agreeing to a five year ban from managing any business issuing securities to the public saw Talbot admitting guilt to the ‘relevant interest’ charge with charges of insider trading dropped.
Justice Jagose was underwhelmed by Talbot’s request for leniency having pleaded guilty to the ‘relevant interest’ charge. A guilty plea could have come much earlier, he said, rather than being used as a bargaining chip for the prize of avoiding an insider trading charge.
While working part-time as chief financial officer of listed company VMob Ltd, Talbot purchased VMob shares through his company: MST Holdings Ltd. These transactions were disclosed, as required by securities legislation. VMob now trades as Plexure.
The High Court was told Talbot also purchased VMob shares for Blumau Finance Ltd, a company owned by his father. These transactions on behalf of a family member were not disclosed, as required by rules now re-enacted in the Financial Markets Conduct Act.
Talbot was prosecuted under predecessor legislation which set a maximum fine of $30,000. Current legislation sets a $200,000 maximum.
R. v. Talbot – High Court (9.04.19)
19.073