Coroner & Legal
Ex-Gunns boss John Gay fears prison will harm health
The insider trading sentencing hearing for the former head of Gunns has been told a prison sentence would severely affect his health.
Gay pleaded guilty to one count of insider trading last week.
He admitted illegally disposing of 3.4 million Gunns shares in December 2009 while he was in possession of price sensitive information.
Lawyers for the Australian Securities and Investment Commission (ASIC) have told the court a term of imprisonment is appropriate.
But Gay’s defence team have said the case was an exceptional one, and the 70-year-old should not go to jail.
The court heard Gay was diagnosed with prostate cancer in 2008 and a prison term would have a severe effect on his health.
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Gay sold his shares for about 90 cents each, netting $3.1 million.
When the company released its half yearly results two months later, the share price dropped to below 70 cents.
Gay’s lawyers and ASIC are likely to spend the rest of the day making submissions on a penalty.
At the time of the offence the maximum penalty was five years in jail or a $220,000 fine.
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• ABC: Former Gunns boss to learn fate on insider trading charge next week