Kurt Schlosser, the former Tesla Motors Australia Pty Ltd (Tesla Australia) director, was sentenced earlier this month after pleading guilty to two insider trading offences.
In his role as country director, Schlosser was informed of a confidential, in-principle agreement that Piedmont Lithium Ltd, which is listed on the Australian Securities Exchange, would supply lithium to Tesla Inc in the US. Schlosser used the information to purchase 86,478 shares in Piedmont Lithium Ltd in two transactions. He also gave a friend the same information. Shortly after the company announcement went public, Schlosser sold the shares for a realised profit of A$28,883.53 ($19,299).
“This criminal outcome demonstrates the serious consequences for trading when in possession of inside information.”
ASIC Deputy Chair Sarah Court
“ASIC is committed to acting against conduct that damages the integrity of Australia’s financial markets,” said Sarah Court, Deputy Chair of the Australian Securities & Investments Commission (ASIC). “Insider trading undermines investor confidence and gives individuals an unfair advantage. This criminal outcome demonstrates the serious consequences for trading when in possession of inside information.”
Schlosser, who pleaded guilty on November 15, 2022, was sentenced to prison for two years and six months imprisonment, but will be released immediately on the condition that he would be of good behaviour for the same period.
Schlosser has automatically been disqualified from managing corporations for the next five years. He will also forfeit the trading’s profit to the Commonwealth.
