10-08AD ASIC bans Melbourne broker for three years for insider trading
Friday 22 January 2010
ASIC has banned Melbourne broker, Mr Mark Richard McKenzie, from providing financial services for three years.
An ASIC investigation found that between 26 July and 8 August 2006, while employed as a broker with Citigroup Wealth Advisers Pty Ltd., Mr McKenzie possessed inside information regarding a possible takeover of Vision Systems Limited (VSL), a publicly listed company on the Australian Securities Exchange (ASX), and purchased VSL shares on his own account and advised four of his clients to purchase VSL shares.
In a related investigation, Mr Colin Hebbard, a former broker employed in Citigroup’s Perth office, was also found to have communicated inside information on VSL shares to Mr McKenzie and three of his clients, and then advised them to purchase the stock.
ASIC subsequently banned Mr Hebbard from providing financial services for five years (refer to ASIC advisory, AD 09-16.
ASIC’s investigation followed a referral from the Australian Securities Exchange.
Mr McKenzie appealed to the Administrative Appeals Tribunal for a review of ASIC’s decision, and the Tribunal has affirmed the three-year banning.