A Victorian doctor has been handed an 11-month jail term and ordered to pay $225,447.24 after admitting to insider trading linked to a Cann Group Limited capital raising.
Antonio Stella, of Donvale, pleaded guilty on 1 October 2025 to two counts of insider trading over trades executed in July 2021 ahead of the medicinal cannabis company’s share placement. He will be released forthwith upon entering a recognisance of $1,000 to be of good behaviour for 12 months.
The court heard the placement aimed to raise $20 million at a discount to Cann Group’s prevailing share price. Between 19 and 20 July 2021, before the placement was publicly announced on 26 July, Dr Stella sold 2,561,286 Cann Group shares for $954,886 while in possession of inside information. He later acquired 2,090,909 shares at the discounted placement price.
Prosecutors said the trades led to a $204,490 profit and the avoidance of $20,986 in losses.
ASIC Deputy Chair Sarah Court said, ‘If someone unfairly makes a gain from insider trading, other investors are losing. Financial markets can only operate fairly if information is available to all investors at the same time.
‘This crime affects all Australians who invest in the share market and ASIC will continue to take strong action to combat insider trading.’
In sentencing, His Honour Judge Allen weighed the seriousness of the offending against mitigatory factors including Dr Stella’s cooperation, ill health, age, character and remorse, noting the penalty was significantly lower than it would otherwise have been. He said that, but for consent to make a pecuniary penalty order, he would have increased the sentence to 12 months for each charge and, without the early guilty plea, would have imposed 16 months for each charge.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions following an ASIC investigation and referral. Dr Stella was indicted on insider trading charges on 7 March 2025. A share placement is a method for companies to raise funds by issuing new shares, typically at a discount to the market price.
