Tesla Australia director Kurt Schlosser has avoided a prison sentence following his guilty pleas to two charges of insider trading.
The Sydney District Court sentenced Schlosser to two years and six months imprisonment, but he will avoid spending any time behind bars, instead being released immediately on a good behaviour bond.
The court was told that Schlosser found out about a confidential agreement for ASX-listed Piedmont Lithium to supply lithium to Tesla, and then purchased 86,478 shares in the lithium mining company. He further told another person of the pending deal “in circumstances where it was likely that person would also acquire Piedmont Lithium Ltd shares.”
The shares were later sold for $28,883.53, which Schlosser must now forfeit to the Commonwealth. He is also barred from managing a corporation for five years.
Schlosser was hit with the charges following an investigation by ASIC.
“ASIC is committed to acting against conduct that damages the integrity of Australia’s financial markets,” ASIC Deputy Chair Sarah Court said.
“Insider trading undermines investor confidence and gives individuals an unfair advantage. This criminal outcome demonstrates the serious consequences for trading when in possession of inside information.”
