The convicts testified before the district court in Oslo that they traded shares in Aker Horizons ASA, on the advice of a then-employee of the company who had confidential information.
One of the two convicts bought shares for approximately PLN 1,7 million NOK, and the second one for approximately NOK 160. The purchases were completed on March 000, 23, one day before Aker Horizons announced that Mitsui & Co., Ltd. had joined Aker Horizons as a long-term strategic investor in Aker Horizons' Irish subsidiary, Mainstream Renewable Power Ltd. Both convicts sold their shares immediately after publication of the Aker Horizons stock exchange announcement on March 2022. Profit was collected, approximately NOK 24 and approximately NOK 486.
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Both men explained to the district court that an Aker Horizons employee had encouraged them to buy Aker Horizons shares before news of the deal went public. They were sentenced to 5 months and 45 days of unconditional imprisonment, respectively, after the penalty was fully deducted for making unconditional confessions. Both accepted the verdict.
Unlawful disclosure of confidential information and solicitation of insider dealing
A former employee of Aker Horizons, from whom the convicts claimed to have received advice, had inside information about the contract between Aker Horizons and Mitsui through his work. This person is suspected of illegally sharing confidential information. She is also suspected of encouraging or recommending inmates to use confidential information. The case against this person is still being investigated by the Økokrim.
Fairness and trust of the exchange
Market integrity and trust are prerequisites for economic growth and prosperity. Market abuse undermines the integrity of financial markets and can undermine public and investor confidence in securities.
People who do not themselves have inside information also harm the market when they act on the advice of insiders. Therefore, acting on advice based on inside information is as punishable as acting on inside information.
Public preventive considerations dictate, in light of the generally low risk of detection, a response with severe penalties for insider trading and other forms of market abuse, says police attorney Lars-Kaspar Andersen, Økokrim officer.
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Source: Økokrim
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