A Sydney finance executive faces up to 10 years jail after being charged with 67 counts of insider trading based on tips it's believed will be alleged to have come from inside investment bank Credit Suisse.
The Australian Securities and Investments Commission alleges Michael William Hull, 39, of Cronulla, used information from a close friend working in investment banking to buy shares in companies that were involved in ''major corporate transactions''.
It is believed ASIC's case will focus on tips allegedly passed while the two men were jogging together in Sydney's Domain, on the edge of the central business district.
ASIC alleges that between 2008 and 2011 Mr Hull bought shares in nine ASX-listed companies, reaping a profit of more than $600,000.
Mr Hull was working for ''an Australian-based infrastructure investment management company'' at the time, ASIC said.
The regulator declined to identify the company, or the company that employed his friend.
However Fairfax Media understands his friend was an analyst at Credit Suisse and Mr Hull was employed by Infrastructure Capital Group at the time of the alleged trades. It is also believed that during their time together, the men discussed the sharemarket.
However, it is not clear whether ASIC will allege that Mr Hull was given generic tips or specific information about takeover bids or other deals Credit Suisse was working on.
Representatives of Credit and Infrastructure Capital Group declined to comment.
ASIC said it was continuing to investigate the conduct of the person who conveyed the information to Mr Hull.
Mr Hull's solicitor, James Wheeldon, said he had ''no comment at this stage''.
Mr Hull appeared at Sydney's Downing Centre Local Court on
Tuesday but was not required to enter a plea. He will return to court for a hearing on July 8.
An AFP spokesman said it was hoping to recover the $600,000 proceeds of crime allegedly made by Mr Hull through an application before the NSW Supreme Court. It said the amount recovered would ultimately be determined by the court.
The Supreme Court froze the shares in September following an application from the AFP in June.
The enforcement and strength of insider-trading laws have been questioned in recent months, after the corporate regulator to dropped its investigation into share spikes at Leighton Holdings and David Jones.
Most recently, the regulator was criticised for failing to persuade the Tasmanian Supreme Court to reject former Gunns boss John Gay's application to direct two companies - after a 2013 conviction banned him from running a company.
ASIC has asked for harsher penalties for white-collar criminals and more resources to go after suspected wrongdoers.
It said the alleged trading by Mr Hull was identified by its market surveillance team.