Sharechat Logo

Eroad confirms Jeff Honey no longer employed after insider trading conviction

Wednesday 14th June 2017

Text too small?

Eroad, the logistics and fleet management software developer, says former senior employee Jeffrey Peter Honey is no longer employed by the company after his sentencing for insider trading yesterday.

Honey, who was an insights and analytics manager at Eroad, pleaded guilty to a charge of insider trading in April and was yesterday sentenced to six months home detention. Another person involved, who has interim name suppression, still faces one charge of insider trading under section 241 Financial Markets Conduct Act – namely, “information insider must not trade”. That defendant is yet to appear before the Auckland District Court and has applied for permanent name suppression.

Honey texted confidential company information about Eroad’s performance in the period ended Sept. 30, 2015 to a former staffer, then suggested the staffer sell Eroad shares. The staffer then traded 15,000 shares. Eroad posted a profit of $611,000 in the six months ended Sept. 30, 2015, from a year-earlier loss of $1.9 million. Sales jumped 55 percent to $12.2 million.

In a statement, Eroad said Honey no longer works for the company, and said he “was not a senior employee in Eroad’s business as has been reported by some media outlets”. However, when Honey joined Eroad in 2014, the company described him as one of several "key appointments … creating a deeper profile to our senior management team for the business."

"Jeff's appointment enables Eroad to build capability in data analytics" with his background in insights and analytics including senior roles at BNZ and Vodafone, it said at the time.

Chief executive Steven Newman said the company was disappointed the offending had occurred, and had fully supported the Financial Market Authority's investigation. The court and the FMA had commented on the strength of the company's internal controls and the FMA had drawn extensively on the training and materials the company gives to employees in its evidence, he said.

"We’re pleased the court and the FMA have recognised Eroad’s commitment to protecting the integrity of New Zealand’s financial markets. We continue to offer all staff extensive compulsory training on the importance of complying with the law when trading in Eroad securities," Newman said.

Eroad shares last traded at $1.70, having sold at $3 apiece in its 2014 initial public offering. The shares traded as high as $4.19 in March 2015 before slumping to $2.66 as at Sept. 30, 2015.

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite
ANALYSIS: Why banks don't pass on full OCR cuts
NZ Europeans make up 80% of business leaders, survey shows
Zespri tries to whet American appetite for kiwifruit
MARKET CLOSE: NZ shares fall as Pushpay follows Aussie software firms lower

IRG See IRG research reports