Former executive of BG Group jailed for insider trading

A FORMER executive vice-president of BG Group has been jailed for insider trading relating to a $640,000 deal involved shares in BG Group subsidiary, Queensland Gas Company.

The former executive, Dr Stuart Alfred Fysh, was sentenced to two years in prison, with at least 12 months non-parole, in the New South Wales Supreme Court in November.

Dr Fysh has filed a notice of intention to appeal against the conviction, which came after an investigation by the Australian Securities and Investments Commission into the trades.

The Supreme Court jury found Dr Fysh had information relating to BG Group's interest in QGC when he bought 250,000 shares in QGC for $3.19 a share in December 2007.

In February 2008, BG Group and QGC announced an $870 million strategic alliance.

Dr Fysh then sold his shares in QGC in November 2008, at $5.75 a share, for $1,437,500, raking in a profit of $640,000 for the trade.

In a separate case by the Australian Federal Police against Dr Fysh, he was ordered by the court to pay a $640,857 fine in relation to the same trade.

Dr Fysh will also be disqualified from managing a corporation in Australia, including acting as a company director, for five years after his release from prison.