Ex-Mac banker admits to insider trading

FORMER Macquarie banker made a $1.4 million profit buying shares based on insider information.

Oswyn de Silva, 37, admitted to making 12 trades armed with insider information between 20 December 2006 and 26 April 2007, Sydney's Central Local Court heard today.

De Silva has previously described Macquarie as an "inhuman" place to work which forced "people to perform" and admitted to abusing cocaine and had suffering from depression. He added that he had changed his mind about the bank after he received a termination payment when he resigned because of complications with his HIV illness.

Today, the court heard that de Silva had purchased shares and contracts for difference (CFDs) in eight different companies, making a gross profit of more than $1.4 million, while working at Macquarie in Singapore

The Australian Securities and Investments Commission alleged that at the time he bought the shares he knew or should have known that his company was also about to buy large volumes of the same security, which would cause their price to increase.

"Shortly after acquiring the securities and CFDs he disposed of them for substantial profits, often selling the securities directly to Macquarie Investment Management," ASIC said.

"This type of insider trading is commonly known as ‘front running’."

On March 24 this year, de Silva was sentenced to at least six months in prison for contempt of court after he attempted to flee Australia despite a court ordering banning him from doing so.

The matter returns to the Central Local Court on 29 September for sentencing. - By Edmund Tadros, Business Editor

ninemsn 22 Sep 2010

Another example of a so called 'lone' rogue individual.

Realistically the Fall Guy for a web of deceit.