Kevin Young, a former treasury accountant with Heartland Bank Limited, has today been sentenced to home detention for insider trading.
Kevin Young, a former treasury accountant with Heartland Bank Limited, has today been sentenced to home detention for insider trading.
A former Heartland Bank accountant has been sentenced to six months’ home detention and ordered to pay a fine after pleading guilty on three charges relating to insider trading.
Kevin Young, a former treasury accountant with Heartland Bank, purchased Heartland Group Holdings Limited (HGH) shares in August 2020 whileholding material information that was not generally available to the public.
Young sold those shares in September 2020 and made a profit of $11,241 (excluding costs and commissions).
Along with his personal gain, in July 2020, Young disclosed material information concerning HGH that was not generally available to the public to a former colleague, Pritesh Patel, knowing that he would or was likely to purchase HGH shares.
In February 2021, Young, while holding material information that was not generally available to the public, advised or encouraged another former colleague to hold on to their HGH shares.
The Financial Markets Authority initially brought four charges against Young.
In December last year he pleaded guilty to three charges, with the FMA agreeing to withdraw one charge it had initially brought against him.
Today he was sentenced in the Auckland District Court to six months’ home detention and ordered to pay a fine of $11,241 (the gain from his offending).
FMA head of enforcement Margot Gatland said the sentence was a warning to those looking to use their position to exploit the system.
“The court’s ruling demonstrates that such behaviour will not be tolerated, and individuals who commit insider trading will be held to account for their actions,” Gatland said.
“Insider trading is a serious offence that undermines investor confidence in the New Zealand markets and gives individuals an unfair advantage. The FMA will continue to take action when we see this type of misconduct damaging the trust and confidence in New Zealand’s financial markets and businesses.”
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
