ASIC, police raided house of insider trading accused Duncan Stewart

A man accused of insider trading was interviewed by authorities at his house two years after information about an ASX-listed lithium takeover bid was allegedly traded, court documents reveal.

Duncan Stewart with his barrister Ruth Shann. Picture: Angelica Snowden

A man accused of insider trading was interviewed by authorities at his house for about 20 minutes two years after information about an ASX-listed lithium takeover bid was allegedly traded, court documents reveal.

Documents released in Duncan Stewart’s court case – concerning allegations he passed on inside information about possible takeover bids of Kidman Resources by Chilean major SQM and separately Wesfarmers in 2019 – show the Melbourne man’s two iPhones were also seized, along with a Lenovo laptop belonging to Dominique Stewart during a raid on February 24, 2021.

The Australian Federal Police were assisted by officers from the Australian Securities & Investments Commission to execute search warrants at a house in ­Armadale, in Melbourne’s southeast, after they first launched an investigation on November 1, 2019, according to ASIC senior specialist Kerrie Ma’s statement.

Ms Ma said she entered the property at about 8.15am and shortly after that, physical searches began and an AFP federal agent introduced her to the occupants, Mr and Ms Stewart.

“I introduced myself to Mr and Ms Stewart and had a conversation concerning the conditions of the search warrant,” she said.

“At around 9.22am, Duncan Stewart was offered the opportunity to participate in a voluntary interview, to which he agreed.

“The interview was conducted by me and (senior lawyer Michelle Burton) and concluded at around 9.42am.”

In addition to an iPhone 11 and iPhone Xs belonging to Mr Stewart and a Lenovo laptop belonging to Ms Stewart, a hard drive was also seized that contained “extracted and downloaded materials” from a MacBook Air, an iPhone Xs and iPhone 7 cloud backup belonging to Ms Stewart.

The raid ended at about 5pm, Ms Ma said.

According to her statement, Mr Stewart’s brother, Ashley Stewart, also handed his iPhone Xs, iPhone 12 mini and iPad pro to ASIC in late November 2021. As well, Samuel McCardle handed over an iPhone 12 to ASIC for evidence.

Ms Ma’s statement also showed that a number of notices were issued to former Kidman Resources managing director Martin Donohue, collapsed advisory firm Dixon Advisory, Greenhill and Co and Wesfarmers, among other individuals and companies.

Mr Stewart faced a committal hearing at Melbourne Magistrates Court last week to determine if there is enough evidence in ASIC’s criminal case against him.

ASIC has claimed Mr Stewart received information from his brother-in-law and Kidman Resources boss Mr Donohue about the possible bids in 2019, which he used to buy shares in the company and urged his brother Ashley to do the same.

Last week, the court heard ASIC was eyeing a number of persons of interest in the case, “a distinction was drawn with Duncan Stewart because located on his phone was a text message of 1 March 2019 which was referred to and considered … as a potentially incriminating message”.

In the text exchange on March 1, Mr Stewart “clearly (had) inside information obtained at about the time … relating to a potential takeover of Kidman by SQM”, ASIC alleged.

An expert report from stock analyst Martin Duncan, released to the media and tendered into evidence, revealed he advised ASIC it was his professional opinion that had information contained in the text and further information about a Wesfarmers bid been publicly available, it was likely to influence investors to buy stock.

Magistrate Rohan Lawrence is due to decide this week if the matter will proceed to a higher court, and if all or some of the four charges Mr Stewart is accused of will carry.