Former Telstra director fined, banned for insider trading

High profile Australian businessman Steve Vizard has been fined 390,000 dollars (292,000 US) and banned from serving on corporate boards for 10 years after being convicted of insider trading while a director of telecom giant Telstra.

Vizard, a former entertainer and television talk-show host, had admitted using confidential information gained as a Telstra director to trade 850,000 dollars worth of shares in technology companies in which the telco was planning to invest.

The penalty handed down by a federal court was harsher than that sought by the Australian Securities and Investments Commission (ASIC) but fell far short of the maximum possible civil punishment of a 600,000 dollar fine and a life ban from managing companies.

ASIC had sought 390,000 dollars in fines and a five-year ban from company boards during Vizard's trial last week.

Federal Court judge Ray Finkelstein called Vizard's actions "dishonest and a gross breach of trust" and said ASIC's recommendation for a five-year corporate ban was not sufficient.

"A message must be sent to the business community that for white-collar crime, the game is not worth the candle," he said.

ASIC has has come under criticism for not seeking criminal prosecution of Vizard, 49, as it did with another high-profile businessman, Rene Rivkin.

Rivkin, one of Australia's most flamboyant and controversial stockbrokers, was convicted of insider trading in April 2003 and sentenced to nine months of weekend jail stints.

He committed suicide in May at the age of 61 after serving out his sentence.

During Vizard's trial, ASIC lawyer Neil Young said the watchdog had taken into account the businessman's public statements of regret in drawing up its submission on a recommended penalty.

"Mr Vizard deserves credit for that, (his expressions of regret) merit a substantial reduction" in penalties, Young said.

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