Eroad staff charged with insider trading

Financial Markets Authority CEO Rob Everett. Photo / Supplied
Financial Markets Authority CEO Rob Everett. Photo / Supplied

One current and one former employee of logistics and fleet management company Eroad have been charged with insider trading.

The Financial Markets Authority (FMA), which brought the charges, said this morningthat the charges related to the trading of Eroad shares.

"FMA alleges that the current Eroad employee sent text messages to the former employee containing confidential material information relating to Eroad's performance in the period to 30 September 2015. The former employee then traded 15,000 Eroad shares," the FMA said.

The FMA had also filed charges against one of the individuals alleging obstruction of the FMA's investigation into the matter.

FMA general counsel Nick Kynoch said the integrity of New Zealand's capital markets was a strategic priority for the FMA.

"Trading misconduct, such as insider trading, negatively impacts the integrity and reputation of our markets, and the confidence of people investing in them," Kynoch said.

Eroad's conduct did not form part of the investigation and the company had fully co-operated with the FMA.

Information on the suspicious trading was provided to the FMA by the NZX in November 2015.

The two individuals have not been named as they are yet to appear in court, where they will have the opportunity to apply for name suppression.

They are to appear in Auckland District Court on April 11.

Eroad uses state-of-the-art hardware and the internet to capture information for clients such as road user charges as well as tracking vehicles.

- NZ Herald

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