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Eroad confirms Honey no longer employed

NZ Newswire logoNZ Newswire 14/06/2017 Sophie Boot

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 on Tuesday.

Honey, who was an insights and analytics manager at Eroad, pleaded guilty to a charge of insider trading in April and was 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".

Honey texted confidential company information about Eroad's performance in the period ended September 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 September 30, 2015, from a year-earlier loss of $1.9 million. Sales jumped 55 per cent to $12.2m.

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".

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," Mr Newman said.

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