The former CEO of Big Un Limited, Mr Richard Evans, also known as Richard Simon Evertz, has appeared via his lawyer in the Downing Centre Local Court charged with insider trading.
ASIC alleges that Mr Evans communicated inside information about Big Un to a shareholder on or around 10 January 2017. The information concerned the number of customers who had already been onboarded to purchase Big Un's promotional 'TV Show' package at a cost of $12,000, together with a $20 million funding arrangement with 'Finstro', a product of Sydney-based financier First Class Capital, which allowed customers to make this purchase on deferred payment terms.
Big Un was one of the top performing shares listed on the ASX in 2017. Its shares were suspended from trading in February 2018 after information about Big Un's funding arrangement with First Class Capital was released. Big Un was placed in voluntary administration and delisted from the exchange in August 2018. It is now in liquidation.
The matter has been listed for mention at the Downing Centre Local Court on 11 April 2023.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.
ASIC's investigation concerning Big Un and its officers and executives is ongoing.
Background
Communicating inside information is an offence under section 1043A(2) of the Corporations Act. At the time of the alleged offending, the maximum penalty was 10 years imprisonment and/or a fine of 4,500 penalty units or, if the court can determine the total value of the benefits that have been obtained by one or more persons and are reasonably attributable to the commission of the offence, three times that total value. The maximum penalty is now 15 years imprisonment and/or a fine of 4,500 penalty units.
ASIC has previously taken action against the auditor of Big Un, Mr Graham Rothesay Swan, who was convicted for failing to conduct the audit of Big Un Limited in compliance with auditing standards (22-198MR).
