11 Apr 2017

Guilty plea to insider trading charge in ERoad case

8:45 pm on 11 April 2017

A man has pleaded guilty in the country's first criminal prosecution of insider trading of a listed company's shares.

Zurich building, Central Auckland

Zurich building, Central Auckland Photo: RNZ / Calvin Samuel

The Financial Markets Authority brought charges against two men relating to trading in the technology company, ERoad.

It alleged a current employee passed on inside information by text message to a former employee, who then traded in the company's shares.

This morning in the Auckland District Court a man pleaded guilty to one charge of insider trading, while the authority withdrew other charges.

The man was remanded for sentencing on 13 June and has been granted interim name suppression.

Another person faces one charge of insider trading and will appear in court at a later date.

The charges were brought after the NZX told the FMA about what looked like suspicious trading in ERoad's shares.

The company's chair has said he was confident that the alleged disclosure had not compromised the company's operations, nor any of its customers, suppliers or stakeholders.