Former HealthBeacon employee fined for insider trading
A former employee of HealthBeacon, Alan Dalton, has been fined €67,580 by the Central Bank for engaging in insider trading. This decision follows an investigation that revealed Dalton had sold his shares in the company prior to it entering examinership, thereby breaching market abuse regulations (MAR) on two separate occasions. The Central Bank’s investigation found that Dalton had sold his shares under circumstances that were not part of his normal employment duties.
Dalton’s actions took place while he was in possession of sensitive, material information regarding the company, which he had obtained through his role at HealthBeacon. After resigning from the company on 24 June 2022, Dalton contacted his broker and requested the sale of his shares on two separate occasions, 27 June and 4 July. At the time, Dalton was aware of issues with the company’s supply chain that would impact the production of its Smart Sharps Bin, information that had not yet been disclosed to investors.
On 6 July 2022, HealthBeacon made an unscheduled announcement regarding delays in the supply of components for the Smart Sharps Bin, which led to a reduction in its deployment forecast and a subsequent sharp decline in the company’s share price. By selling his shares before this announcement, Dalton avoided a potential loss of €21,800. He later admitted to the breaches and agreed to settle the matter, resulting in total sanctions of €87,200, comprising a €65,400 fine and a €21,800 disgorgement. With the application of a 30% settlement discount, the total amount Dalton will pay is €67,580.
The Central Bank‘s actions in this case demonstrate its commitment to investigating suspicious transactions and enforcing market integrity. The submission of suspicious transaction and order reports (STORs) under Article 16 of MAR plays a key role in protecting securities markets from abuse. According to Karen O’Leary, director of enforcement for the Central Bank, “Trading while in possession of inside information, especially when an individual is in a privileged position to hold such information, is an abuse of the system and undermines the integrity of the market and as such is viewed very seriously by the Central Bank.”
