The charmed run before the courts enjoyed by John Gay, former chairperson of Tasmanian timber company Gunns, may soon be over.
Gunns became insolvent in 2012, owing investors more than $1 billion. The company had been in serious financial trouble since February 2010, when a director’s report detailing its falling revenue was made public.
Two months before the report was released, Gay used his inside knowledge of the company’s financial position to sell Gunns shares worth more than $3 million. He avoided what was thought at the time to be a loss of $800,000.