Insider trading penalty raised to jail time
A former tax consultant from a "big four" accounting firm has been sentenced to nearly two years' jail for insider trading.
Nicholas Glynatsis, 30, has been convicted of using inside information - gained while working in PricewaterhouseCoopers' tax and legal department - to trade financial products in numerous energy and resource companies between November 2009 and 2010.
He was convicted of using his knowledge of impending company takeovers to make gross profits of $50,826, for himself and his relatives. He invested a total of $371,507 to do so.
In December, Glynatsis was sentenced to two years' jail, to be served by way of community service. But that decision was overturned in the NSW Supreme Court on Friday.
Glynatsis has been resentenced to 21 months' jail, after an appeal from the Crown, and will be released from prison on December 11, 2013, pending good behaviour.
Justice Clifton Hoeben said no other sentence would "adequately reflect the seriousness of the offences".
Glynatsis started working with PwC in early 2007. Within two years he had become a senior consultant in the tax and legal department.
The position gave him access to records and files of PwC's clients and projects for which it had been asked to provide advice.
It also gave him exclusive use of a laptop with a program that gave him access to a record management system housing caches of files relating to PwC's clients.
According to court documents, Glynatsis viewed confidential documents that identified proposed transactions involving PwC clients such as corporate takeovers, and then traded in shares with derivative products called contracts for difference, or CFDs.
He set up a trading account with CMC Markets Asia Pacific in his own name and three separate accounts held by his relatives.
The trades took place between November 2009 and 2010, and he resigned from the company in June 2011 after his offences were detected.