High Court to hear insider trading case
A man charged over alleged insider trading relating to the sale of shares in New Zealand tech company Pushpay has had his case moved to the High Court.
The Financial Markets Authority (FMA) filed proceedings against two individuals over the sale of shares in the company, which provides digital payment services for churches, largely in the United States.
Charging documents filed by the FMA allege one of those charged advised or encouraged the sale of shares held.
The man, was has interim name suppression, appeared at the High Court at Auckland yesterday where Justice Sally Fitzgerald set a trial date for July 2023.
The man previously entered not guilty pleas at the District Court.
A hearing to determine name suppression was set down for October.
In June 2018, Pushpay announced co-founder and director Eliot Crowther had resigned and sold his shareholding in the firm.
The accused is alleged to have used ‘‘this material inside information to advise or encourage another person to trade in the lead up to the market announcement’’.
Crowther’s trading was legitimate and is not part of the proceedings, the FMA previously said. The matter was referred to the FMA by NZX Regulation in July 2018.
Pushpay chairman Graham Shaw previously told the NZX it was not party to the proceedings.
Pushpay co-operated with the FMA, and had in place robust policies, procedures and training around trading in the company’s shares, Shaw said.
‘‘We take seriously our responsibilities as a listed company, and our values, ethics and integrity as a company are at the heart of our business practices.’’
Pushpay counts more than half of the top 100 US churches among its customers.
If found guilty of criminal insider trading, the maximum punishment is up to five years’ prison, a fine of up to $500,000, or both. Civil penalties could include a penalty of $1 million for an individual.