Kevin Young, a former treasury accountant with Heartland Bank Limited, has today been sentenced to six months home detention and ordered to pay a fine of $11,241, in relation to three charges of insider trading brought against him by the Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko.
Mr Young purchased Heartland Group Holdings Limited (HGH) shares in August 2020, while holding material information that was not generally available to the public. He sold them in September 2020 and made a profit of $11,241 (excluding costs and commissions). In July 2020, he also disclosed material information in relation to HGH that was not generally available to the public to a former colleague, Pritesh Patel, knowing that he would or was likely to purchase HGH shares. Finally, in February 2021, Mr Young, while holding material information that was not generally available to the public, advised or encouraged another former colleague to hold onto their HGH shares.
The FMA initially brought four charges against Mr Young. In December 2024 he pleaded guilty to three charges, with the FMA agreeing to withdraw one charge.
The Auckland District Court today ordered Mr Young to serve a sentence of six months home detention and pay a fine of $11,241 (the gain from his offending).
FMA Head of Enforcement, Margot Gatland welcomed the Court's decision saying the sentence was a warning to those looking to use their position to exploit the system.
"The Court's ruling demonstrates that such behaviour will not be tolerated, and individuals who commit insider trading will be held to account for their actions. Insider trading is a serious offence that undermines investor confidence in the New Zealand markets and gives individuals an unfair advantage. The FMA will continue to take action when we see this type of misconduct damaging the trust and confidence in New Zealand's financial markets and businesses."
