Oliver Curtis insider trading trial: Ducati a birthday gift, not from trading funds, court told

BANKER Oliver Curtis bought his alleged insider trading conspirator a Ducati motorbike as a birthday present, as well as buying expensive cars and paying for holidays with friends, a court has heard.

Banker Oliver Curtis arrives with his wife Roxy Jacenko at the Supreme Court. Curtis is facing insider trading charges. Picture: AAP

THE banker husband of public relations queen Roxy Jacenko bought his alleged conspirator in insider trading a Ducati motorbike as a birthday present not as part of his share from their ill-gotten gains, a court has heard.

Convicted insider trader, John Joseph Hartman, 30, is giving evidence against his childhood friend, banker Oliver Curtis, over alleged insider trading, claiming they spent about $1.4 million on a jetsetting, lavish lifestyle when they were aged 21.

Curtis, who went to elite Sydney school St Ignatius College Riverview with Hartman, has pleaded not guilty to one count of conspiring to commit insider trading between May 1, 2007 and June 30, 2008.

Oliver Curtis and wife Roxy Jacenko outside court today. Picture: David Moir

Under cross examination, defence barrister Murugan Thangaraj SC, put it to Hartman that the Ducati Curtis bought for him for almost $20,000 was a birthday present and was the same motorbike he had bought as a present for his father Nick Curtis, the former chairman of mining Lynas Corporation.

“He bought the two people closest to him the same birthday present in the same year,” Mr Thangaraj SC said.

“I didn’t know he had given it to him (his father) for his birthday, I did not know it had been given to him so ...” Hartman replied.

Hartman, who has served 15 months’ jail for insider trading, claims the Ducati was part of what Curtis owed him as part of their agreement to split the proceeds of the alleged illegal trading 50/50.

Mr Thangaraj referred to an email Curtis wrote to Hartman before he bought him the bike saying, “nice mate ... birthday present??”.

Hartman replied in an email: “I worked for it but birthday present is a good excuse.”

Mr Thangaraj said to him in front of the jury: “The email was not written as a joke. This email was written as a person asking his best friend if it is something he wanted for his birthday.”

The question was struck out by Justice Lucy McCallum on the grounds Hartman would not know what was in the mind of Curtis.

John Joseph Hartman arrives at the Supreme Court yesterday. Picture: Ross Schultz

Hartman said the “birthday present” story was an excuse they came up with when Curtis went to the bike dealership with him and paid for the Ducati on his American Express card.

“I believe the sales manager thought it was very unusual for a man to be buying another man a bike,” Hartman said

“Did he think you were a couple, did he?” Mr Thangaraj asked.

“I don’t know what he thought but we used it as an excuse,” Hartman replied.

The jury also heard Curtis had that year purchased his then girlfriend a car for $130,000 and had bought himself an Aston Martin.

“He told you before he bought this car that he was about to get an enormous bonus from his employer, investment banking firm Transocean Group,” Mr Thangaraj said.

“I think he told me he was going to get a BMW X5,” Hartman responded.

Hartman yesterday gave evidence that the alleged insider trading scheme involved him passing Curtis inside information he gained working as an equities trader for investment management fund Orion Asset Management.

Pic of Oliver Curtis and wife Roxy Jacenko leaving St Jame rd court today. Curtis is facing charges of insider trading

Curtis allegedly would then buy or sell shares based on Hartman’s tips making up to $100,000 in a day.

Hartman said Curtis was so successful he became one of online trading company CMC Markets best clients and was taken to the Melbourne Cup as a guest.

Mr Thangaraj put to Hartman that he was already “front running” on Orion Asset Management in 2006 when he set up a personal trading account with IG markets.

“The reason Mr Curtis was trading through CMC Markets was because it was his money,” Mr Thangaraj said to Hartman.

“He set up the account, yes,” Hartman replied.

“The proceeds were his money because if the proceeds were yours and his it would have been far more sensible and logical to do this through IG markets,” Mr Thangaraj said.

“The reason we set up CMC Markets was because it was in his name not mine,” Hartman replied.

Hartman was grilled on an overseas holiday with friends to Canada’s Whistler ski resort area and Las Vegas which he claimed they partly paid for with the profits from alleged insider trading.

He conceded they told their friends that Curtis was paying for parts of the trip for everyone.

“It was no surprise to them because ... he was generous with his friends,” Mr Thangaraj said.

“He liked to show off,” Hartman replied.

The court heard Oliver Curtis also bought his father Nick Curtis (pictured) a Ducati bike.

John Hartman told the court his former mate Oliver Curtis bought him a Ducati bike for his birthday.

Hartman told Mr Thangaraj he did not tell his friends that he was also paying to fund the trip because, “we’d have to tell them that we were inside trading”.

“Why,” Mr Thangaraj asked.

“Because where else would I have gotten the money?” Hartman replied.

Mr Thangaraj put to Hartman that he had already bought a MINI Cooper, a Ducati bike and was living with Curtis in a $3000-a-week Bondi apartment.

“You are living in this flash apartment, you have got a car, you have got a bike — you could not spare a few thousand for your mates? Is that what you are telling us?” Mr Thangaraj said.

“Yes, sir,” he said.

The court heard that after Hartman was arrested for personal insider trading, separate from Curtis, he told ASIC investigators that Curtis had transferred $100,000 from an overseas account to a casino before they went on holidays.

The court has previously heard Hartman was eventually caught in 2009 when his IG account, through which he had illegally made $5.9 million, was investigated.

He pleaded guilty to multiple charges under the Corporations Act in relation to insider trading and was sentenced in 2010 to three years with 15 months non-parole.

He received a 10 per cent discount on his sentence by agreeing to give evidence against Curtis.

Curtis is supported in court by his wife, public relations power woman Roxy Jacenko, and his father, a former chairman of rare-earths miner Lynas Corporation.