inside trading & organised (alleged) crime

  1. 11,223 Posts.
    From today's West Australian

    Kizon profit came from 'trade scam'

    By Sean Cowan

    ORGANISED crime target John Kizon's investment manager, Nigel Mansfield, was allegedly involved in an insider trading scam that scored big profits for Mr Kizon and his mother.

    Details of the alleged trading emerged in the Supreme Court yesterday in an action brought by Mr Kizon to recover about $1.2 million.

    Mr Kizon's lawyer, David Grace QC, revealed for the first time in open court that the Australian Crime Commission believed Mr Mansfield had made the profits by illegally trading in sharemarket-listed company My Casino.

    Mr Grace told the Supreme Court Mr Mansfield denied the allegations.

    Last month The West Australian revealed that Mr Kizon and an investment company owned by his mother, Mary Anastasiou, had been paid a total of more than $2 million by Mr Mansfield, a South Perth market analyst, between June and August, 2000.

    Between them, Mr Kizon, his mother and an Indonesian business partner had invested about $450,000 with Mr Mansfield in March.

    Mr Mansfield, a long-time casino executive, was arrested by ACC officers during a raid last July.

    He was charged with money laundering, conspiring to defraud the Commonwealth and defrauding the Commonwealth. Those charges have since been dropped and replaced with a charge unrelated to Mr Kizon.

    Mr Mansfield's assets have been frozen.

    My Casino started life as Abador Gold but relisted on the Australian Stock Exchange in April 2000 after Mr Mansfield and his partners sold their internet casino project into the company.

    The Kizon money was used to buy placement stock in the new entity which was sold at a big profit.

    Mr Grace also referred to an ACC analyst's affidavit. The affidavit outlined the complex way in which Mr Mansfield sold the My Casino stock - through Hong Kong-registered shelf companies Hallstrom Nominees and Birkendale Ltd.

    Mr Mansfield refused to comment on the allegations. His lawyer Michael Tudori said no charges had been laid over insider trading. Should charges be brought they would be vigorously defended. There was no suggestion in court Mr Kizon was involved in insider trading. Justice Christine Wheeler reserved her decision.

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