The Commonwealth Director of Public Prosecutions has confirmed it is pursuing proceeds of crime action against former Gunns boss, John Gay.
Gay was fined $50,000 and disqualified from running a corporation after being found guilty of selling 3.4 million Gunns shares in 2009 while he had price sensitive information.
Lawyers acting for Gay say the Commonwealth Director of Public Prosecutions has sent a letter stating it intends lodging a pecuniary penalty order against the former timber boss, which compels him to pay money for the benefits derived from criminal activity.
The CDPP says it is still waiting on expert evidence about the benefit Gay gained as a result of his offending.
It has previously been estimated Gay made close to a $1 million from the sale of the shares.
The letter was mentioned during a Supreme Court hearing focussed on determining whether Gay should be allowed to run a family company.
The former chairman of the collapsed timber company told the court a business his family owns will not survive if he cannot run it.
He is seeking leave from the Australian Securities and Investment Commission (ASIC) to serve as a director for Specialty Veneers and the family trust which owns it, JEG Management.
The company has operations in Launceston and Somerset, in north-western Tasmania, and employees 21 people.
