It’s the biggest insider trading case Australia has ever had. And it was cracked by a foreign exchange broker who used LinkedIn to make a vital connection between the two men accused.
NAB associate director Lukas Kamay made over 50 large online bets on the Australian dollar just seconds before significant economic news was announced.
Kamay’s bets drew the attention of NAB broker Owen Kerr, who turned to LinkedIn to confirm his suspicions: Kamay had an old university friend – Christopher Hill – who was working at the Australian Bureau of Statistics. It’s alleged that Hill, who had access to a wide range of confidential data as part of his position, supplied inside information to Kamay.
NAB and the ABS monitored the two men in their offices for nine months using surveillance cameras and phone taps before cracking the $7 million scandal.
Kamay is said to have offered Mr Hill a $50,000 bribe to disclose the information. He used his earnings from the foreign exchange market to purchase Alisa and Lysandra Fraser’s apartment from The Block worth $2.4million. This and other assets have now been frozen by the Australian Federal Police (AFP) and Australian Securities and Investments Commission (ASIC).
NAB has undertaken to assure the public that “Kamay’s trades were made in his personal capacity and that no NAB money, no NAB customer money or NAB systems were used”.
CEO Cameron Clyne also sent an internal message to all staff last Friday, declaring, “I want to be clear: the activity alleged by authorities is unlawful and completely unacceptable”. He urged employees to report any illegal behaviour.
The consequences of insider trading are serious
Insider trading could occur within any organisation with or without strict regulations. The penalties for insider trading are heavy, and the potential for serious reputational damage high.
Are all of your employees familiar with insider trading laws? Employees who are shareholders in particular need to know when they can and cannot trade in company shares.
Make sure your organisation is fully compliant with insider trading laws today.
Source: Sydney Morning Herald, Alleged insider trading case cracked through LinkedIn