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David Richwhite and Midavia Rail Investments Ltd.

Wellington, New Zealand: (Jun-18-07) The New Zealand Securities Commission brought insider trading charges against David Richwhite, one of New Zealand's richest men and one of his companies, Midavia Rail Investments Ltd. The suit alleged that shares in the Tranz Rail railway company were sold in 2002 when Richwhite and Midavia, as director and shareholder, respectively, possessed inside knowledge of the company's deteriorating financial situation. It further alleged that the directors tipped off the sellers.

In an out-of-court settlement reached, Richwhite and the investment company Midavia Rail Investments agreed to pay the commission 20 million New Zealand dollars, ($15 million US). Richwhite, whose wealth has been estimated at 660 million New Zealand dollars, made the payment without an admission of liability. The commission said the 20 million dollars was a payment toward the compensatory amount sought by the commission and included contributions for interest and the commission's costs of the proceeding. [EARTH TIMES: INSIDER TRADING]


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Published on Jun-21-07


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