23 Aug 2013

Judge Calls John Gay 'Exememplary'

From ABC                                                  
The former chairman of the failed Tasmanian timber company Gunns has avoided jail for insider trading and has instead been fined $50,000.
John Gay was at the helm of Gunns in December 2009 when he sold 3.4 million of his shares.
A month earlier he had seen a private management report highlighting an expected drop in profits.
Gunns' share price then plunged at the release of its half yearly results.
In sentencing, Justice David Porter told the Supreme Court in Launceston the offending was not in the serious category of insider trading.
Justice Porter said he was satisfied Gay was of exemplary character.
He said the offence fell in the less serious category, because Gay had been motivated to sell the shares by his prostate cancer diagnosis, not by the receipt of the price sensitive information, and he had told the company secretary of his intent to sell the shares.
Gay did not comment to waiting media, but he was heckled by two anti -Tamar Valley pulp mill protesters as he left the court.
Gay pleaded guilty to insider trading on the basis he should have known he had information that may have influenced shareholders if it was made.
COMMENT. Why is Justice Porter complimenting John Gay's character after Gay admitted he was a  'white collar criminal'? Porter should either be sacked or resign for promoting criminal activities.

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