When the Feds came tapping on Flemming Nielsen's front door in February 2007, they were armed with notepads, pens and pro-forma questions.
Dr Nielsen invited Australian Securities and Investments Commission investigator Brian Colliss and a junior colleague into his family room and is said to have told them he read investment magazine Huntleys, as well as BRW, Smart Money and the Australian Financial Review.
When asked why he had bought shares in diagnostic equipment maker Vision Systems, the senior paediatrician is said to have told the investigators that Huntleys recommended the stock. He is also said to have told them his decision was influenced by personal experience and Vision's cancer products.
The conversation was recounted by Mr Colliss yesterday to a WA Supreme Court jury hearing charges that Dr Flemming insider traded. He is fighting 13 charges over dealings before a US group launched a bid for Vision on August 14, 2006.
His former Citigroup stockbroker Rob Catena has pleaded not guilty to charges relating to dealings in shares from July 18, 2006.
Tapes played to the jury had Mr Catena telling Dr Flemming on July 19 of a takeover rumour. When the doctor asked about the "Vision thing" on August 2, Mr Catena said he had spoken to his contact and "he says, very close".
Defence lawyers have told the jury the accused men knew no more than could be discerned from publicly available information.
Prosecutors yesterday read a statement from Huntleys veteran Andrew Doherty listing Vision mentions in various Huntleys publications. He said none of the three research reports between March and July 2006 referred to a takeover or merger for Vision.The trial continues today.
The new magazine for a new generation of West Australians.Click here to download »
All the latest market figures from Australia and the world.Click here »
'The West Australian' is a trademark of West Australian Newspapers Limited 2013.
All rights reserved.
Select your state to see news for your area.