AdultShop.com managing director Malcolm Day gave false information about his company to a pair of alleged insider trading conspirators, a District Court jury was told this morning.
John Kizon and his share trading partner Nigel Mansfield bought shares thinking the false information was true and hoping to make a profit, the jury was told.
Prosecutor Alan Macsporran said the men lost money on the trades after relying on the bogus information.
"It seems that Malcolm Day ... was up to no good," Mr Macsporran said.
He made the comments opening the prosecution case on five charges that Mr Kizon and Mr Mansfield conspired to insider trade AdultShop shares in 2002.
The men are fighting all the charges.
Mr Mansfield is also fighting 28 insider trading charges and Mr Kizon is fighting one charge of insider trading in the sex shop and online entertainment group.
Mr Macsporran said Mr Day would not be called as a witness but the jury would hear his voice in intercepted phone calls.
He said the first conspiracy was embarked upon by the accused men in January 2002 after Mr Day spoke to Mr Mansfield, who was described as a confidant of the AdultShop boss.
Mr Mansfield obtained so-called inside information about the expected sales and profit for AdultShop, it was alleged.
The trial is expected to last six to eight weeks.