Inside Trader Suspect in Court over Lucapa Diamond Find
April 13, 21
(IDEX Online) - An Australian man has appeared in court charged with insider trading over a high-value diamond discovery.
He's alleged to have bought up shares in Lonhro - now Lucapa - for a family member when he learned of a high-value diamond discovery the company had made in Africa back in 2012.
The find was only made public five days later, by which time the shares bought had increased in value by $4,500 (at current AUD/USD rate).
The 50-year-old man appeared at Perth Magistrate's Court, Western Australia, on Friday, according to The Motley Fool investors' website, which did not name him.
He is accused of buying up shares for a relative, and passing the tip to a client, who did not act on it.
The maximum sentence for insider trading is 10 years in prison and a $375,000 fine.