Former Lonsec chief pleads guilty

The former head of stockbroking firm Lonsec has pleaded guilty to insider trading. Norman Graham has admitted in the Melbourne Magistrates' Court to two counts of insider trading, related to trades he ordered in February 2010 while the managing director of Lonsec. He ordered the sale of 200,000 shares in Clean Seas Tuna, knowing ahead of the public release of the company's accounts that it had suffered a loss of more than $10 million in the six months to the end of December 2009, the Australian Securities and Investments Commission alleged. Mr Graham was also aware Clean Seas' was having problems with illness in its young tuna stocks. The day after Mr Graham's trades were made, the company released its financial accounts and announced its problems with fish illness, causing a big fall in its share price. Mr Graham has been bailed and will face a plea hearing in May.