Aussie inside trader netted more than $2m

A former Australian equities dealer has been jailed for at least three years for insider trading that netted him more than A$1.9 million ($2.4 million).

John Joseph Hartman, 25, was led away from his tearful family at Sydney's Supreme Court yesterday, having pleaded guilty to 25 offences under the Corporations Act - most of them commonly known as insider trading, as well as six offences known as "tipping".

In sentencing, Justice Peter McClellan said Hartman's offences began in 2006 while he was employed by Orion Asset Management.

"In the course of buying and selling in significant volumes, the offender came to appreciate that large-volume trading could have the effect of raising or lowering the price of a stock within a short timeframe," Justice McClelland said.

Using his knowledge of Orion's upcoming acquisitions and sales, Hartman would text message a good friend and co-accused, advising of the purchase or disposal of shares.

Hartman's charges related to the trading of stocks in companies including Alumina, CSR, AMP, Caltex, Transpacific Industries and Suncorp-Metway. In multiple audits by Orion, Hartman told his employer he had conducted no personal trading. But his employment was terminated in January last year.

A day later, Hartman went to the Australian Securities and Investments Commission, where he was interviewed and agreed to co-operate with inquiries into his conduct.

Hartman admitted passing the information to a close personal friend, against whom he has agreed to give evidence.

"It must be remembered that his crimes were not victimless," Justice McClelland said of Hartman.

"Each illegal transaction was likely to have a cost to someone who either traded or held their position without the benefit of the knowledge available to the offender."

Hartman was sentenced to a maximum of 4 years jail and will be eligible to apply for parole in December 2013.

- AAP