Former Vocus chair Vaughan Bowen to defend insider trading charges

The legal firm representing Vaughan Bowen says the former telco executive maintains his innocence, ahead of a looming court date.

Vaughan Bowen, former chairman of Vocus Group. Stuart McEvoy for The Australian.

Former Vocus chairman Vaughan Bowen will front court in July after being indicted on two charges of insider trading, for allegedly selling over 5 million Vocus shares while in possession of undisclosed competitive information.

The Commonwealth Director of Public Prosecutions indicted the former telco executive this week after the charges had previously been discharged following a contested committal hearing at the Melbourne Magistrates’ Court in December.

The charges were brought by financial regulator ASIC, which alleges Mr Bowen sold 5.6m Vocus shares in June 2019 while in possession of undisclosed information concerning the likely withdrawal of a proposal by EQT Infrastructure IV Fund to acquire the group.

ASIC said in a statement that the CDPP may directly indict an accused after the Magistrates’ Court declines to commit an accused for trial.

Mr Bowen, who was first charged in September 2021, has previously denied the charges. A spokesman for the executive’s legal firm Baker & McKenzie said Mr Bowen would continue to maintain his innocence.

“On December 21 2022, Mr Bowen was discharged from these charges in the Melbourne Magistrates’ Court,” the spokesman told The Australian.

“Mr Bowen maintains his innocence, and will vigorously defend the charges.”

Each charge of insider trading carries a maximum penalty of 15 years’ imprisonment.

The matter is being prosecuted by the CDPP following an ASIC referral with the matter listed for a court hearing on July 19.

Mr Bowen founded and led challenger telco M2 in 1999, scaling up the business before it merged with Vocus in 2016, where he served as an executive director and then chairman until 2016. He was then replaced as chairman by former Telstra chairman Bob Mansfield.

Founded by entrepreneur James Spenceley in 2008, Vocus operates Australia’s second-largest intercapital fibre network. The company is now the nation‘s fourth largest telco, operating brands including Dodo, iPrimus and Commander, and was delisted in June 2021 after a consortium comprising Macquarie Infrastructure and Real Assets and Aware Super completed a $3.5bn buyout.

Following his departure from Vocus, Mr Bowen joined Adelaide-based broadband outfit Uniti Wireless and served as an executive director there until April 2022.

Earlier this year Ellie Sweeney, a former Telstra executive, was appointed Vocus chief executive, after serving for a stint as its chief operating officer. The company is now embarking on a $1bn five-year investment program in what represents its largest fibre build-out in its history.