Former corporate adviser Cameron Kerr Waugh has been sentenced to two years imprisonment from 25 March 2024, with release after nine months, upon entry into a recognisance to be of good behaviour for 15 months.
At a Supreme Court of Western Australia hearing on 26 March 2024, Mr Waugh was sentenced for insider trading offences, contrary to s1043A(1) of the Corporations Act 2001, in relation to his trading in Genesis Minerals Limited shares in September 2021.
Mr Waugh pleaded guilty to acquiring 747,626 shares in Genesis between 14-21 September 2021 when he became aware of a funding proposal that included a multi-million dollar Genesis share placement and a restructure of the Genesis board that would see experienced mining executives, Raleigh Finlayson and Neville Power join the board.
Mr Waugh came into possession of the information through his role at Omnia Company Pty Ltd where he received email correspondence of the proposal and a draft ASX Announcement for Genesis outlining the funding package and Mr Finlayson and Mr Power’s invitations to join the Genesis Board.
On 22 September 2021, this information became public when Genesis released an ASX announcement titled ‘Raleigh Finlayson to Cornerstone Strategic Funding Package’ which subsequently saw the Genesis share price rise 187%.
Between 1 and 19 November 2021 Mr Waugh sold the 747,626 Genesis shares, realising a profit of $57,256.44.
At the time of the offence, a breach of s1043A of the Corporations Act carried a maximum penalty of 15 years imprisonment and/or a maximum fine that is the greater of either 4,500 penalty units ($999,000) or the benefit derived (or detriment avoided) multiplied by 3 ($171,769.32 in Mr Waugh’s matter).
As a result of his conviction, Mr Waugh is automatically disqualified from managing corporations for five years.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
