In the case of Kamay v The Queen  VSCA 296 (13 November 2015), the Supreme Court held the defendant Lukas Kamay guilty of money laundering, identity theft, and insider trading (Australasian Legal Information Institute, 2015). The defendant pleaded guilty to all these charges. The Supreme Court Justice, Elizabeth Hollingworth, regarded this case as the worst instance of insider trading which has come forward before any of the courts in Australia.
Lukas Kamay was the associate director at the foreign exchange sales desk, of the National Australian Bank, in Melbourne, and Mr. Hill was the time series analyst, at the Australian Bureau of Statistics. Kamay and Hill had a mutual arrangement, according to which, Hill would provide the information pertaining to the MEIs (Main Economic Indicators), which are regarded as significant, as well as, supremely confidential statistics, related to the state of the market of the Australia, as well as, the economy of the country, to Kamay. Kamay would then use this MEI information, to sell/buy the margin FX contracts (Australasian Legal Information Institute, 2015). Some of these were deliberately traded at a loss, to show a normal trading pattern. Kamay went beyond the agreed limit, set between him and Hill, of $200000. This resulted in a net profit of above $7 million to Kamay, whilst Hill received only $200000 from this arrangement..
Supreme Court Justice, Elizabeth Hollingworth, in the matter of the charges relating to insider trading, found that, Kamay knew that this MEI information was not ordinarily available information (Danckert, 2015). She held that in case this information was ordinarily available, any prudent individual would anticipate it to have a major effect upon the value/price of such contracts. She further held that the insider trading was not a victimless crime, as it not only harmed the market, but the public confidence as well. She acknowledged that Kamay had conducted 45 transaction, spread over a period of 8 months, in a carefully planner, premeditated manner. Further, Kamay took deliberate steps to conceal this by incurring some losses. So, Kamay was motivated purely and simply by personal greed, and there was no financial pressure, or any addiction problems. The judge held that even though the defendant was legitimately regretful, but the general deterrence had a key role in this whole scheme. So, she awarded Kamay imprisonment for 7 years, 3 months, for insider trading, along with a non-parole period of 4 and half years (Vines & Carlyon, 2015).
Supreme Court Justice, Elizabeth Hollingworth considered that Kamay was trying to cover the proceeds of the crime committed by him, by attempting to wear a cloak of respectability. Kamay was clearly aware about the confidentiality of the MEIs, and even though it is not a serious crime, but there was a harm caused to the general public (Narushima, Rooy, & Randall, 2015). The judge also considered the sole motivation of Kamay, was to gain profits.
The judge, considering this the worst instance of insider trading, said that Kanay had only brought shame, as well as, embarrassment to himself, along with his family. Though, she held that Kanay had outstanding hopes for rehabilitation. During the sentencing, Elizabeth Hollingworth acknowledged, that she wanted the young people to be deterred, from engaging in such criminal conduct, in the corporate world.
Australasian Legal Information Institute. (2015). Kamay v The Queen  VSCA 296 (13 November 2015). Retrieved on 06/10/16 from: https://www.austlii.edu.au/cgi-bin/sinodisp/au/cases/vic/VSCA/2015/296.html?stem=0&synonyms=0&query=Kamay%20v%20The%20Queen
Danckert, S. (2015). Insider trader Lukas Kamay jailed for seven years. Retrieved on 06/10/16 from: https://www.theaustralian.com.au/business/insider-trader-lukas-kamay-jailed-for-seven-years/news-story/952d8812aa879f484214f7a5ebb3cae1
Narushima, H., Rooy, J.V., & Randall, S. (2015). Court comes down hard on Young insider trading offenders: DPP (Cth) v Hill and Kamay  VSC 86. Retrieved on 06/10/16 from: https://www.lexology.com/library/detail.aspx?g=a702268d-82cc-402a-a9f8-956a88530648
Vines, H. & Carlyon, P. (2015). 'Greedy' pair Lukas Kamay, Christopher Hill jailed over $7 million ABS insider trading scam. Retrieved on 06/10/16 from: https://www.abc.net.au/news/2015-03-17/pair-sentenced-over-abs-insider-trading/6324526
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