Chance to win shares in ousted Aussie hedge fund

Undeterred at being kicked off the Unlisted share trading market, Australian investor Stephen Matthews now plans to give away shares in his global hedge fund.

Once he gains legal approval, he will fax Auckland businesses this week offering individuals the chance to win 500 shares. One winner will receive 50,000 shares in Matthews' "Hedge Fund Patrol".

Matthews incorporated Hedge Fund Patrol in New Zealand last year and listed the shares on Unlisted last month.

His aim was to to start a US$100 million ($140 million) global hedge fund from New Zealand which, he said, had more relaxed regulations than Australia.

The shares were suspended two days after debut, before any had changed hands, when Unlisted became concerned about what information had been provided to investors.

Matthews was this week confident the fund would proceed despite the latest setback and previous run-ins with Australian regulators.

The Australian Securities and Investments Commission brought charges against him in May 2001 over advice he posted on the website The Chimes. He was found guilty of contempt of court and received a 12-month suspended jail sentence and two-year good behaviour bond.

In May 2000, Matthews was jailed for three months for contempt of court relating to earlier postings on The Chimes.

Neither conviction involved fraudulent activities.