Ex-banker Michael Hull jailed for insider trades

Michael Hull, a former ANZ accountant, received stock tips from his jogging buddy.

Michael Hull, a former ANZ mergers and acquisitions accountant, has been sentenced to 17 months in prison for insider trading, after receiving stock tips from his jogging buddy and family friend, former Credit Suisse vice-president Darren Thompson.

The South African-born Mr Hull managed to make more than $270,000 after investing in three small mining companies on the back of inside information passed to him by Mr Thompson, who worked on mergers for Credit ­Suisse. The Australian Securities & Investments Commission started investigating Mr Hull in 2011. The Weekend Australian understands a case is continuing to be built against Mr Thompson.

The NSW Supreme Court yesterday heard that Mr Thompson would give stock tips to Mr Hull during lunchtime jogs around Sydney, and one time after a child’s birthday party, which Mr Hull would then use to buy stock through an ETrade account.

Mr Hull, who lived in Cronulla with his wife and four children, traded in the shares of Mac Services, Giralia Resources and Jabiru Metals between 2010 and early 2011. The companies were all subject to takeover proposals for which Credit Suisse was carrying out due diligence advice.

Mr Thompson told Mr Hull that Mac Services was “worth a punt”. It was the subject of a takeover proposal from Oil States International. Mr Thompson worked as an adviser on the investment bank’s related projects.

About 60,000 shares in iron ore explorer Giralia were bought by Mr Hull after Mr Thompson provided a tip-off about Atlas Iron’s takeover bid. During a jog, Mr Thompson told Mr Thompson: “Giralia is a good opportunity. Giralia has the infrastructure to get its deposits up and is an attractive target”.

Giralia shares surged 40 per cent after Atlas bid for the company, pumping up Mr Hull’s shareholding by $71,000. Despite realising a gross profit of $46,000 on the Atlas shares Mr Hull received as part of the takeover, the decimation of the iron ore junior amid the mining bust had seen Mr Hull’s total shareholding reduced to just $625 at the end of March.

Mr Hull, who pleaded guilty to 63 charges, was sentenced to 17 months in prison, but will be released in January 2017 with an 18-month good behaviour bond.