A Perth business executive with a “glittering career” in the oil and gas sector has been sentenced to 18 months’ jail and fined $20,000 for insider trading.
Steven Robert Noske, the former boss of oil and gas juniors Bass Strait Oil and WHL Energy, was found guilty of one count of insider trading by a Supreme Court jury earlier this month.
The Australian Securities and Investments Commission brought about the charges after Noske bought 750,000 WestSide Corporation shares while in possession of insider knowledge about a proposed takeover bid of WestSide, by gas processing company Liquefied Natural Gas Ltd (LNGL).
The court heard Noske was told about the proposed bid in confidence by the managing director of LNGL, Maurice Brand, who was seeking advice on aspects of the deal on Friday the February 3, 2012.
On February 6, 2012, Noske instructed his stockbroker to buy the 750,000 WestSide shares which cost him more than $220,000.
The shares were bought over five days from February 6 to 10.
On February 13, WestSide announced the bid prompting a surge in the share price.
Noske made a notional profit of about $180,000 but sold his shares over several months and due to the share price decreasing, made a net profit of about $50,000.
The court heard Noske lost the profit he made in further bad investments.
He also lost two jobs, his house and assets and resorted to social security payments as a result of the charge brought against him.
Justice Stephen Hall said Noske abused his position of trust and confidence by LNGL and the jail term was a reminder of the significant obligations of those with insider knowledge.
“You were motivated by the prospect you could make a profit at the expense of others,” he said.
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