Media Release
MR No. 2025 – 15
The Financial Market Authority (FMA) – Te Mana Tātai Hokohoko – has welcomed the Court of Appeal’s decision on the Pushpay insider trading appeal.
In August 2023 the defendant was found guilty of an insider trading offence following a four-week trial in the Auckland High Court. They were sentenced to six months community detention and a fine of $100,000. In April 2024 they appealed the conviction and the High Court’s decision to refuse name suppression. The Crown also appealed the sentence, saying it was manifestly inadequate.
FMA Head of Enforcement Margot Gatland says, “We were pleased with the Court’s decision to uphold this conviction. Insider trading is a serious offence that undermines investor confidence in New Zealand markets. The FMA will continue to take action when we see this type of misconduct as it damages the trust and confidence in New Zealand’s financial markets and businesses.”
In its judgment the Court of Appeal:
- dismissed the appeal against conviction,
- dismissed the appeal against the refusal to grant name suppression, pending final decision of the conviction appeal, with the existing interim name suppression to continue for seven days post judgment, and
- granted the Crown’s appeal against the sentence in part, increasing the fine aspect of the sentence to $200,000.
Name suppression continues for seven days to allow the defendant to notify family members and/or business interests in advance of name suppression lapsing.
ENDS
Background
The case, brought by the FMA, centered around the resignation and sell-down of shares of former Pushpay co-founder and Director Eliot Crowther in June 2018. The FMA considered Mr Crowther’s intention in this regard to be material information, which, if generally available, would be likely to have a material effect on the price of Pushpay’s shares at the time.
The FMA alleged that the defendant knew of, and used, that information to advise or encourage others to trade in the lead up to Mr Crowther’s announcement.
Mr Crowther’s trading was legitimate, and he was not party to the proceedings.
Related media releases
FMA alleges insider training of Pushpay shares
Guilty verdict media release
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