Tesla’s Top Exec Faces Tough Justice for Insider Trading Scheme

Must Read

After a decision by the Australian corporate watchdog agency, the former Tesla Inc. (NASDAQ: TSLA) director for Australia will have to serve two and a half years in prison – unless his behaviour is outstanding during that time.

The case outcome comes after the former director Kurt Schlosser pleaded guilty to two counts of insider trading concerning Tesla’s supply contract with Piedmont Lithium Inc. last year, as confirmed by Australia’s governing body for securities and investments – the Australian Securities and Investments Commission.

After being informed of the particulars regarding a long-term supply arrangement for spodumene concentrate, ASIC declared that Kurt Schlosser bought 86,478 shares in Piedmont – an American corporation. He completed this purchase through two separate transactions.

As the esteemed Country Director of Tesla Australia, Mr Schlosser was made privy to an in-principle agreement between Tesla Inc. (based in the United States) and Piedmont Lithium Ltd., a publicly-traded company listed on the Australian Securities Exchange.

This confidential accord pertained to furnishing lithium supplies from ASX’s Piedmont Lithium Limited to Tesla Incorporated.

Following its released announcement to the public, Mr Schlosser quickly profited from his investment by gaining a realised dividend of $28,883.53 when he sold off his shares.

ASIC strongly condemns any behaviour that compromises the credibility of Australia’s financial markets. Insider trading is an illegal practice that gives certain people an unwarranted advantage, and this sentence proves how severely it can be punished. We want to preserve a safe and equitable environment for all investors, so we remain committed to prosecuting anyone guilty of insider trading with full force.” ASIC Deputy Chair Sarah Court said.

The regulator asserted that Schlosser communicated confidential information to someone, with a high likelihood that the individual would use the details to purchase Piedmont shares.

We do not comment on the legal proceedings of individuals or other companies,” Piedmont said. 

The sentence is a stern warning for all individuals who disregard fair trading practices and commit insider trading offences. It is reassuring to see that the law and enforcement still have teeth, with appropriate punishments handed out from the government. 

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img