Pushpay insider trading case: Prominent businessman loses latest bid for name suppression

The Court of Appeal has declined to continue name suppression for a businessman convicted of insider trading, but granted him a week of further anonymity to decide whether to appeal that decision. Photo / Mark Mitchell

A prominent businessman found guilty in 2023 of insider trading over the sale of Pushpay Holdings shares is closer to being named, with the Court of Appeal increasing his fine and dismissing his bid for continued name suppression.

The case brought by the Financial Markets Authority (FMA) concerned the sale of the company’s shares in 2018 as the company’s co-founder, Elliot Crowther, flagged internally his intention to resign and sell down his own stake.

Crowther was not charged and was part of the case only as a witness.

After a four-week trial in the High Court at Auckland, a jury had found the businessman guilty and he was given a sentence of six months’ community detention and a fine of $100,000.

The businessman appealed much of the 2018 case, including his conviction – arguing a miscarriage of justice had occurred – as well as the decision to decline to extend his interim name suppression.

The Court of Appeal rejected the appeal against conviction.

The FMA also appealed the sentence, arguing it was manifestly inadequate and that home detention should be imposed.

The regulator argued the sentence was significant for the market enforcement regime as there had only been one other conviction for insider trading in New Zealand history, and that a $100,000 fine was not a meaningful deterrent given the businessman’s wealth.

The Court of Appeal found the sentencing judge had understated the culpability of the offending but was correct in imposing a sentence of community detention. The Court of Appeal did, however, increase the fine to $200,000.

The businessman had enjoyed name suppression prior to and during his trial, and the High Court’s denial of his application to have it continue following conviction until his planned appeals were resolved was itself appealed.

The Court of Appeal again declined his suppression application, ruling that the interest of open justice needs to take precedence given this case was of significant public interest.

After a courtroom loss at this penultimate stage, the businessman still has the option of taking his case to the Supreme Court. Such a move would likely involve interim suppression continuing until the appeal is resolved.

A lawyer acting for the businessman said they had not yet decided whether or not to appeal further, but the Court of Appeal has imposed a further seven-day period of interim suppression in order to provide time for this decision to be made.

Matt Nippert is an Auckland-based investigations reporter covering white-collar and transnational crimes and the intersection of politics and business. He has won more than a dozen awards for his journalism – including twice being named Reporter of the Year – and joined the Herald in 2014 after having spent the decade prior reporting from business newspapers and national magazines.