By Ross Kelly
SYDNEY--A former senior BG Group PLC. (BG.LN) executive was
found guilty by an Australian court Wednesday of insider trading
after he bought shares in a company shortly before it was acquired
by the British energy company.
Stuart Fysh, the former head of BG's Asia, Middle East and
Africa divisions, was accused of the crime by Australia's
securities regulator in late 2008. He left BG in December that year
after an internal company investigation concluded his position
there was untenable.
Mr. Fysh had pleaded not guilty to the charges, which relate to
his purchase in 2007 of 250,000 shares each in Queensland Gas Corp.
and Arrow Energy Ltd.. He was found guilty Wednesday in the Supreme
Court of New South Wales of two counts of insider trading related
to his purchase of the Queensland Gas shares.
He was found not guilty regarding his purchase of the Arrow
Energy shares. That company was eventually acquired by Royal Dutch
Shell PLC (RDS) and PetroChina Co. (PTR) in 2010 following a
bidding war with BG.
"The verdict serves to emphasise how important it is that
employees understand their obligations in relation to confidential
information and dealing in shares," a spokesman for BG Group
said.
According to the Australian Securities & Investments
Commission, Mr. Fysh made about 640,000 Australian dollars
(US$668,000) from his trades in Queensland Gas shares. Supreme
Court Judge Lucy McCallum will sentence Mr. Fysh at a date to be
determined.
Insider trading in Australia currently carries a maximum penalty
of 10 years in prison.
Mr. Fysh's attorney's weren't reachable for comment.
Write to Ross Kelly at ross.kelly@wsj.com
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