Asic V Vizard Case Study: Business Data Privacy Violation and Prosecution Proceedings


Task: What prosecution criteria were followed during the Asic V Vizard case study Data Privacy Violation Proceedings?


Introduction: According to the ASIC v. Vizard case study, community prosecution charges were brought before the Tribunal in the case filed on July 4, 2005 against Stephen William Vizard. As the company's administrator, Vizard allegedly circulated critical business data, generating profits for both himself and those who had access to it. This, according to ASIC, was a violation.

ASIC has confirmed that Steve Vizard exploited Telstra's confidential data throughout the period from March to July 2000 while selling the stocks of three significant publicly traded companies, namely Sausage, Computer Share, and Keycorp. In a media release, ASIC requested information and legal contracts and tenders relating to these three issues:

1. An admission of guilt that Vizard violated the law on three distinct times by relying on the words or actions of the management of the company.

2. Sanctions levied against him for violating or abusing rules and laws.

3. His name will be suspended for a period of time from serving as a director in any company due to intentional disorderly behaviour and insider trading.

Particulars of the case

Mr. Vizard was employed by Telstra Corporation Limited as a non-executive director in the case of ASIC v. Vizard. With this title, he has complete control over Creative Technology Investments Pty Limited (CTI), its bookkeeper, and its shareholders. Vizard and his family, which consists of his wife and kids, are shareholders in a company called Brigham Pty Limited. Following that, CTI received a loan from Brigham Pty Limited. This sum was provided by Mr. Vizard or one of his colleagues with the intent to launder money and steal CTI's stock-related profits. This profit was split between Brigham and CTI in proportions of 90% and 10%, respectively. In the final month of 1999, Mr. Vizard handed Brigham Pty Ltd with a $1 million check along with the business he owned. Brigham Ltd. intended to purchase a shared portfolio with the use of this cash. As Telstra's director, this transfer of money allowed Vizard access to private information, which made him think that similar transactions could be useful in the future [1].

Next, Telstra maintained a strategic holding of around 10% in Sausage Software Limited and Solution 6 Holdings Limited. On the subject of a potential alliance combining Solution 6 and Sausage Software and Telstra's purchase of a significant stake in the combined company, the three parties engaged in a private discussion (Solution 6 transaction). Following this conversation, BOD and Mr. Vizard communicated via messages regarding the potential Solution 6 sale. Once the merger was made public, it was assured that the stock price of the named company would increase. Steve Vizard delegated the purchase of the Sausage Software Ltd. shares to Mr. Lay. The stock price of Sausage Software rose sharply, and CTI realised a big gain of about $140,000, which was an unrealized gain. Following Mr. Steve Vizard's advice, Mr. Lay traded a small number of the shares after just 7 days of the information's release for a sizable profit.