AFP may pursue Gay

The article reports that former Gunns chairman John Gay could be pursued for the profits from insider trading of shares in the failed timber company Gunns. It also says the Australian Federal Police (AFP) has received a referral and is deciding whether an investigation is warranted.

John Gay is the former chairman of Gunns, the timber company referenced in the article, and he has been implicated in insider trading of Gunns shares.

The article states John Gay traded about $3 million worth of Gunns shares and was later fined. Authorities are considering pursuing the profits from those trades and the AFP has received a referral to determine if a formal investigation should proceed.

According to the article, John Gay was fined $50,000 in August for trading approximately $3 million worth of Gunns shares.

A referral means relevant authorities or agencies have submitted the matter to the Australian Federal Police so the AFP can consider whether there are grounds to open a formal insider trading investigation.

The article says John Gay could be pursued for the profits of his insider trading, indicating authorities may seek to recover any illicit gains if an investigation finds unlawful conduct. It does not say any recovery has happened yet.

For everyday investors the key takeaway is that insider trading allegations can lead to fines and further investigation, and regulators like the AFP may pursue profits. Staying informed about legal and governance issues at companies you invest in is important for managing risk.

No. The article only says the AFP has received a referral and is considering whether an investigation is warranted. It does not state that a formal investigation has begun or that Gunns as a company is being charged.