By Mark Hawthorne
A former analyst with Moody's Investors Service yesterday faced a Sydney court charged with 10 counts of insider trading in major Australian companies.
Daniel Joffe, 33, of Vaucluse - a former Moody's associate analyst - appeared in Sydney's Downing Centre Local Court to face 10 separate charges of insider trading.
He appeared alongside his friend, 31-year-old Nathan Stromer, of Bondi, who is accused of making the share and derivatives purchases.
The Australian Securities and Investments Commission alleges Mr Stromer bought shares, warrants and contracts for difference in listed Australian companies while possessing ''inside information which Mr Joffe had acquired in the course of his duties with Moody's and passed on to him''.
ASIC alleges the trades occurred between 2006 and 2007:
On about June 14, 2006, Mr Stromer acquired 22,322 stapled securities in GasNet Australia, when he had inside information about a proposed takeover bid.
On about August 8, 2006, Mr Stromer acquired 29,580 shares in Auckland International Airport, when he had inside information about a possible takeover bid.
On about September 27, 2006, Mr Stromer acquired 135,000 contracts for difference (CFDs) in AWB when he had inside information about an announcement AWB was about to make to the ASX.
On about October 26, 2006, Mr Stromer acquired 54,200 CFDs in Boral when he had inside information that it was likely Boral would announce a profit downgrade.
Between November 13 and 14, 2006, Mr Stromer acquired 962,000 CFDs in Alinta Infrastructure Holdings when he had inside information that it was to be the target of a takeover bid.
On about November 30, 2006, Mr Stromer acquired 265,487 CFDs in Sydney Roads Group when he had inside information that it was to be the target of a takeover bid.
Between about December 1 and 4, 2006, Mr Stromer acquired 791,500 CFDs in Sydney Roads Group when he had inside information that it was to be the target of a takeover bid.
On about December 4, 2006, Mr Stromer acquired 500,000 Macquarie Bank call warrants in Sydney Roads Group when he had inside information that it was to be the target of a takeover bid.
On about December 8, 2006, Mr Stromer acquired 400,000 Macquarie Bank call warrants in Sydney Roads Group when he had inside information that it was to be the target of a takeover bid.
Between about January 22 and 29, 2007, Mr Stromer acquired 417,790 CFDs in Rinker Group when he had inside information about a possible corporate restructure and about Rinker's third-quarter results.
Neither Mr Joffe nor Mr Stromer entered a plea. The matter will next be heard on June 1.
Moody's is a ratings company that, along with others in its field, assesses the debt levels of major corporations, financial institutions and sovereign issuers.