The former CFO of Big Un Limited, Mr Andrew Scott Corner, has appeared via his lawyer in the Downing Centre Local Court charged with insider trading contrary to s1043A(1) of the Corporations Act.
ASIC alleges that Mr Corner was in possession of inside information in late 2017 when he procured two private companies to sell 1.7 million Big Un shares for a total value of more than $5 million.
The information that Mr Corner allegedly possessed related to a funding arrangement between Big Un’s subsidiary, Big Review TV Limited and Sydney-based financier, First Class Capital.
Big Un was one of the top performing shares listed on the ASX in 2017. Its shares were suspended from trading in February 2018 after information about Big Un’s funding arrangement with First Class Capital was released.
Big Un was placed into voluntary administration and delisted from the ASX in August 2018. It is now in liquidation. Big Review TV is also in liquidation.
The matter has been listed for mention at the Downing Centre Local Court on 25 July 2023.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.
Background
Trading while in possession of inside information is an offence under section 1043A(1) of the Corporations Act.
At the time of the alleged offending, the maximum penalty was 10 years imprisonment and/or a fine of 4,500 penalty units, or, if the court can determine the total value of the benefits that have been obtained by one or more persons and are reasonably attributable to the commission of the offence, three times that total value. The maximum penalty increased in March 2019 to 15 years imprisonment and/or a fine of 4,500 penalty units.
ASIC has previously taken action against:
- The auditor of Big Un, Mr Graham Rothesay Swan, who was convicted for failing to conduct the 2017 audit of Big Un in compliance with auditing standards ().
- Mr Jakin Leong Loke, whose auditor registration was suspended for 12 months by the Companies Auditors Disciplinary Board due to his involvement in the 2017 audit of Big Un ().
- Former investment analyst, Mr Michael Ming Jinn Ho, who was sentenced to three years imprisonment to be served via an intensive correction order. Mr Ho was convicted on five counts of insider trading and one count of communicating inside information in respect of Big Un between 2016 and 2018 ().
ASIC has also commenced proceedings against Big Un’s former CEO, Mr Richard Evans for allegedly communicating inside information to Mr Ho in 2017 ().
