Perth accountant faces insider trading charges over Genesis Minerals shares

An accountant has appeared before the Perth Magistrates court on charges relating to insider trading of shares in mid-tier miner Genesis Minerals.

The Perth Magistrates Court in Hay Street where Vittorio Letizia faces charges.

An accountant from Perth has been charged with five counts of insider trading over purchases in mid-tier miner Genesis Minerals dating back to 2021.

The Australian Securities and Investments Commission on Monday revealed that Cottesloe man Vittorio Letizia faced the Perth Magistrates court last week after he was hit with the criminal charges.

In a brief statement, the regulator said it took the action after Mr Letizia bought shares in Genesis Minerals Limited in September 2021.

ASIC did not detail the alleged inside information obtained, and the size of the alleged positions taken is unclear.

“ASIC alleges that Mr Letizia engaged in insider trading on five occasions in September 2021 when he purchased Genesis shares while in possession of inside information,” an ASIC statement said.

It is understood Mr Letizia denies the allegations.

News of charges against Mr Letizia came after corporate adviser Cameron Waugh was jailed for nine months in March. Mr Waugh had pleaded guilty to insider trading when he acquired 747,626 shares in Genesis between September 14 and 21, 2021.

Mr Waugh found out about a funding proposal that included a multimillion-dollar Genesis share placement and a restructure of the board that would result in experienced mining executives Raleigh Finlayson and Neville Power join, ASIC said at the time.

“Mr Waugh came into possession of the information through his role at Omnia Company Pty Ltd where he received email correspondence of the proposal and a draft ASX announcement for Genesis outlining the funding package, and Mr Finlayson and Mr Power’s invitations to join the Genesis board,” the regulator said in March.

“On 22 September 2021, this information became public when Genesis released an ASX announcement titled ‘Raleigh Finlayson to Cornerstone Strategic Funding Package’ which subsequently saw the Genesis’ share price rise 187 per cent.”

Between November 1 and 19, 2021 Mr Waugh sold the Genesis shares for a profit of $57,256.44.

Former Saracen Mineral Holdings boss Mr Finlayson and ex-Fortescue Metals Group executive Mr Power led the $20.8m investment, announced on September 22, 2021.

The funding proposal came before a board and management overhaul of Genesis whereby Mr Finlayson was set to take the company’s top job in March 2022. As well, Mr Power and corporate lawyer Michael Bowen were set to join the company’s board.

Before the announcement Genesis had a market capitalisation of about $155m. In the immediate aftermath the company was worth about $383m.

Mr Metizia’s matter is listed for mention at the Perth Magistrates Court on January 31, 2025 and it is being prosecuted by the Commonwealth Director of Public Prosecutions.

If convicted, Mr Letizia could face a penalty of up to 15 years’ imprisonment or the greater of $999,000 or three times the benefit derived.