A Melbourne man has had his 18-month sentence for insider trading effectively suspended after being released immediately on a two-year good behaviour recognisance, on the condition he pay a $64,975.48 penalty representing the profit from the trades. :contentReference[oaicite:12]{index=12}
The case related to trading in Kidman Resources shares while in possession of inside information about Wesfarmers’ proposed acquisition (reported as a $776 million takeover). :contentReference[oaicite:13]{index=13}
What happened
- Offender: Duncan Stewart (Armadale, Victoria). :contentReference[oaicite:14]{index=14}
- Trades: Purchased shares on 3 and 10 April 2019 while holding inside information; sold after the takeover was announced on 2 May 2019. :contentReference[oaicite:15]{index=15}
- Profit: $64,975.48 (from $130,635.87 of share purchases). :contentReference[oaicite:16]{index=16}
- Sentence: 18 months’ imprisonment, released immediately upon entering a $10,000 recognisance to be of good behaviour for 2 years, conditional on paying the penalty. :contentReference[oaicite:17]{index=17}
Why it mattered to the court
ASIC described insider trading as a serious corporate crime because it undermines confidence in the fairness and integrity of financial markets. The court also noted that, without the guilty plea, a longer custodial sentence would have been imposed. :contentReference[oaicite:18]{index=18}
The extra detail that increased the heat
ASIC stated Stewart also admitted being aware of a separate confidential takeover approach from Chilean miner Sociedad Química y Minera de Chile (SQM) in March 2019, and encouraged a family member to purchase shares. He was not sentenced for that conduct, but it was taken into account in sentencing. :contentReference[oaicite:19]{index=19}
FAQ: Insider trading penalties in Australia
Was this a jail sentence or not?
The court imposed an 18-month imprisonment sentence, but ordered immediate release on a recognisance (good behaviour bond) for two years, conditional on payment of the $64,975.48 penalty. :contentReference[oaicite:20]{index=20}
What did ASIC say about deterrence?
ASIC emphasised that imprisonment is the most severe penalty a court can impose and highlighted the broader market harm caused by insider trading. :contentReference[oaicite:21]{index=21}
What should businesses learn from this?
Market integrity enforcement is not theoretical. If you are close to transactions, keep information ring-fenced, log access, and treat “helpful tips” to friends or family as a compliance failure, because it is.
Original sources: ASIC media release (15 September 2025) and Business News Australia (16 September 2025). :contentReference[oaicite:22]{index=22}
