A Sydney investment banker spent proceeds from trades made using insider information to pay for his $3000-a-week Bondi apartment and a Ducati motorcycle for his friend, a court has heard.
Oliver Peter Curtis has pleaded not guilty to one charge of conspiracy to commit insider trading.
It is alleged the 30-year-old made 45 trades to a profit of $1.433 million based on confidential information given to him by former Orion Asset Management employee and high-school friend John Hartman between May 2007 and June 2008.
The first day of his Supreme Court trial heard Mr Hartman would give evidence the pair, who were in their early 20s at the time of the alleged offences, shared information through a process known as "pinning", which allowed direct communication between two Blackberries.
In his opening address on Wednesday, Prosecutor David Staehli said some of the money earned in the alleged trades were used to pay $156,420-worth of rent on the pair's new apartment in early 2008.
Curtis, who is married to businesswoman Roxy Jacenko, also allegedly bought Mr Hartman a brand new Mini Cooper and motorbike to the tune of $80,000 and transferred him $50,000.
The proceeds were also used to pay for a holiday with friends in Whistler and Las Vegas, it's alleged.
Mr Staehli said Hartman, who told brokers what to trade on behalf of Orion, would send Curtis messages directing him to buy or sell a particular number of Contracts for Difference (CFDs) on a particular company's stock at specific times.
On one occasion, Curtis allegedly traded more than 30,000 CFDs and earned $11,000, from the information on Orion, which managed $6 billion worth of stock at the time.
The trade was allegedly completed the day after he put $80,000 into a new CMC Markets trading account and two days after he bought Mr Hartman a $99 Blackberry.
"You will look at those (45) trades and form the conclusion that they could not have happened without the agreement of the two men," Mr Staehli said.
The court heard Curtis had known Mr Hartman since the 1990s and they both grew up in Mosman.
Mr Hartman has served a jail sentence for insider trading offences and received a discount for assisting Curtis' prosecution.
Mr Staehli is expected to continue his opening address on Thursday.