ASIC’s new insider trading crackdown on dodgy real estate agents

The financial watchdog has revealed how it will crackdown on dodgy real estate agents who are the targets of a new insider trading flying squad.

Dodgy real estate agents who leak details about multimillion-dollar deals will be the targets of a new insider trading flying squad.

The Australian Securities and Investments Commission is recruiting lawyers and investigators to crack down on people ripping off the share market.

A new report out on Wednesday reveals that high end real estate deals, including office towers and apartment blocks, were the most common sources of data leaks.

“Protecting and enhancing the integrity of Australia’s equity markets continues to be a priority focus for ASIC,” ASIC chair Joe Longo said.

“Clean financial markets are essential for the financial wellbeing of Australians and fundamental to an efficient economy.”

The muscling up of its investigations arms comes after a scathing Senate inquiry this month found that “corporate law was under enforced in Australia” and that too often “ASIC failed to respond to early warnings of corporate misconduct.”

ASIC chair Joe Longo says “protecting and enhancing the integrity of Australia’s equity markets continues to be a priority focus for ASIC”. Picture: Aaron Francis/The Australian

ASIC’s Equity market cleanliness snapshot report found that “real estate was the least clean sector” when it came to dodgy deals.

There was a spike in suspicious activity in 2021 during the Covid-19 restrictions, which created unprecedented volatility in the market, the report said.

Insider trading investigations almost doubled in the past year, as ASIC steps up enforcement action.

The financial watchdog will separate its insider trading investigations from other matters so they can focus on the share market scourge.

ASIC currently has six insider trading cases before the courts, while there have also been recent convictions.

Former businessman Cameron Kerr Waugh was sentenced to two years’ jail in March for buying shares in Genesis Minerals Limited after he found out about a major announcement.

He bought almost 750,000 shares in the company after he saw a draft announcement to the Australian Stock Exchange about a funding injection and two new directors to be appointed to the Genesis Minerals Limited board.

The shares rose 187 per cent when the news was announced, netting Waugh a $57,000 profit.

Insider trading landed a former Tesla boss in court. Picture: Odd Anderson/AFP

Former Tesla Motors Australia director Kurt Schlosser pleaded guilty to two insider trading offences in Sydney’s Downing Centre Local Court in March 2023.

Schlosser found out about a deal between Tesla and a supplier Piedmont Lithium Ltd that was about to be announced.

He purchased 86,478 shares in Piedmont Lithium Ltd, making a profit of almost $30,000 once the information became publicly available.

Schlosser was sentenced to two years jail but released immediately on a good behaviour bond.

Originally published as ASIC’s new insider trading crackdown on dodgy real estate agents