Commission settles Provenco insider trading case

The Securities Commission has settled an insider trading case against eftpos machine company Provenco.

In December last year the commission laid insider trading charges against Provenco chairman David Wolfenden, director Nicholas Gordon and former managing director Tony Bradley.

The charges related to three separate periods of trading in Provenco shares between February and March 2003.

The commission brought proceedings under the Securities Markets Act 1988, alleging breach of the insider trading laws.

The defendants contended they had good defences for the claims made against them, but agreed to settle the case.

Provenco has agreed to pay the commission $300,000, Mr Bradley $150,000, Mr Gordon $130,000 and Mr Wolfenden $42,000. The commission said the sums represent an amount for compensation, a component for penalties, and a contribution to the commission's costs.

No judgment will be entered against the company, Mr Wolfenden, Mr Gordon or Mr Bradley.

The commission said it considered the defendants were in possession of inside information about future earnings and business prospects when they made share purchases.

The purchases which were investigated were made after the company announced its half-year result in February 2003. They were a 100,000 parcel bought by Mr Wolfenden for $18,000, 300,000 shares bought by Mr Gordon for $52,800, and 440,000 shares bought by Mr Bradley for $90,700.

In May 2003 the company made an on market buy back of 4,262,517 of its own ordinary shares, paying $1.47 million.

- NZPA