Whitehaven opponent charged over hoax email
Jonathan Moylan tricked investors into thinking a $1.2 billion loan arranged by ANZ for Whitehaven had been cancelled on ethical grounds. Shares in Whitehaven, which then had struggling coal baron Nathan Tinkler as its biggest shareholder, fell from $3.52 to $3.21 before the stock was put into a trading halt.
The incident was the third time in six months that trading on the Australian Securities Exchange had been influenced by a hoax.
The Australian Securities and Investments Commission confirmed that Mr Moylan was charged with one offence of breaching section 1041E of the Corporations Act, covering the making of false or misleading statements.
Mr Moylan reportedly sent out the hoax release from his laptop in the Leard State Forest in NSW.
He faces up to 10 years' jail and a maximum fine of $495,000.
The Lock The Gate Alliance slammed the charge as a double standard. Alliance president Drew Hutton said it was "extraordinary" that Mr Moylan was facing jail.
"We are asking ASIC to reconsider their decision and withdraw the prosecution - the penalty is clearly disproportionate to the offence and Mr Moylan has apologised to anyone affected by his actions," he said.
He said Mr Moylan had sought to focus the nation's attention on "how the proposed Whitehaven coalmine will destroy thousands of hectares of Leard State Forest".
Mr Moylan is due to appear before Downing Centre Local Court on July 23.
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The hoax email falsely claimed ANZ had cancelled a A$1.2 billion loan to Whitehaven on ethical grounds. Investors were misled and Whitehaven shares fell from A$3.52 to A$3.21, temporarily wiping more than A$314 million off the company's value before the stock was put into a trading halt.
Jonathan Moylan has been charged by the corporate regulator, the Australian Securities and Investments Commission (ASIC), in connection with the hoax email sent about the ANZ loan to Whitehaven Coal.
ASIC charged Moylan with breaching section 1041E of the Corporations Act, an offence that covers making false or misleading statements.
According to the report, Moylan faces up to 10 years' jail and a maximum fine of A$495,000 if convicted of the offence under section 1041E.
The hoax release was reportedly sent from Moylan's laptop while he was in the Leard State Forest in New South Wales.
The Lock The Gate Alliance criticised the prosecution as a double standard. Alliance president Drew Hutton called the potential jail sentence "extraordinary," said Moylan had apologised, and asked ASIC to reconsider and withdraw the prosecution, arguing the penalty was disproportionate.
The article notes this incident was the third time in six months that trading on the Australian Securities Exchange had been influenced by a hoax, highlighting a recurring issue for market integrity.
Jonathan Moylan is due to appear before the Downing Centre Local Court on July 23, according to the article.
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