FORMER Gunns Ltd boss and convicted insider trader John Gay has been ordered to pay $500,000 under the Proceeds of Crime Act.

Mr Gay was convicted of insider trading in 2013 after selling more than $3 million in Gunns shares in 2009 and was fined $50,000.

The Commonwealth Director of Public Prosecutions (CDPP) subsequently commenced civil proceedings against Gay under proceeds-of-crimes laws, seeking a pecuniary penalty order in the amount of the “benefit” derived by Mr Gay from the insider trading.

Earlier this month, Justice Stephen Estcourt found Gay had derived a “benefit” from his offending by avoiding a loss and ordered the CDPP and Gay to engage in mediation.

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