The Chief Justice has upheld a series of sanctions against prominent businessman Philip Lynch for insider trading.
Mr. Lynch, former chairman of An Post, founding CEO of publicly traded investment group One51 and long-time head of another publicly traded company, IAWS, is the first person in Ireland found to have been involved in insider trading.
A panel of advisers set up by the Central Bank recommended earlier this year that he would be fined €75,000, barred from participating in a regulated financial services company for five years, put on public notice and would have to pay €37,500 in bank costs. .
The panel was established in 2013 under the EU Market Abuse Regulations 2005. Last January, it recommended sanctions after finding that Lynch had breached the regulations by using inside information to purchase 200,000 C&C shares for his account. approved retirement fund.
On Monday, Judge Mary Irvine upheld the penalties after being told Lynch did not object to the request.
Remy Farrell SC of the Central Bank said this was the first such application under the relevant regulation. The regulations provided that the bank could apply to the court for confirmation of the sanctions if there had been no appeal against the determination, as was the case in this case, he said.
The request was based on an affidavit from Louise Gallagher, head of the Central Bank’s compliance investigations division, who said that, following a substantive hearing before the panel of advisers in September last year, they found that more had been proven. beyond reasonable doubt that Mr. Lynch was in possession of inside information when he purchased the 200,000 shares on October 21, 2008.
The court heard that Mr. Lynch’s disqualification would take place from the date of the court order.
Marcus Dowling SC, for Mr. Lynch, said the adviser recorded that this was an outlier of inside trading in that it was not done for his client to make an immediate profit and he had to hold the stock for a year. However, the point was that if there was any ambiguity, Lynch “should have exercised more caution and not tried to [in the shares]”.
Ms. Justice Irvine said that she had read the documents and that the bank was entitled to the orders requested based on the evidence presented.
He did not order the costs of the hearing, which means that both parties pay their own costs.