A FORMER Macquarie banker will spend time in jail for trying to flee Australia to escape questions from the Australian Securities and Investments Commission about insider trading.
Oswyn de Silva, 36, has been sentenced to prison for contempt of court after trying to catch a flight out of Australia days after ASIC served him with orders that he remain here for questioning. The Malaysian resident had been visiting friends in Australia. He has not been charged over his share trading, which ASIC is still investigating.
The length of his jail sentence is not yet known. New South Wales Supreme Court judge George Palmer has asked for more advice on the treatment de Silva requires for his HIV and an assurance that he will receive that in prison.
In tears in court this week, de Silva admitted to 29 trades that ASIC says earned him $3.6 million in profits in 2006 and 2007.
De Silva, a funds manager, bought securities or contracts for difference in his own name shortly before Macquarie placed large purchase orders for the same securities, then on-sold them to the funds at a profit.
Justice Palmer said he had no doubt de Silva's distress in the witness box was genuine but that he had not accepted full responsibility for his actions. ''Mr De Silva has not given a full and candid account of his conduct to the court and he makes his apologies and admissions to the court for conduct which is only part of the truth,'' Justice Palmer said.
''I cannot, therefore, accept his contrition as sincere. I find that the emotional distress which he had displayed in court results largely from the fact that he has been caught and faces a penalty.''
He said de Silva was previously of good character but since his HIV diagnosis in 2005 had experienced a dark and troubled life.
De Silva told the court of the enormous pressures he felt working for Macquarie, hiding his illness and his addiction to cocaine. He said he felt so guilty about the ''dirty money'' that he traded it back into the market.
Justice Palmer said de Silva's attempt to flee was a premeditated contempt of court that warranted time in jail, and he rejected his offer to pay a $150,000 fine.
''A person with money cannot commit a deliberate and serious contempt of court and expect to buy off a prison sentence,'' Justice Palmer said.
De Silva's admissions in court cannot be used against him if he is charged for the trading. The matter is expected to return to court next Wednesday.
