Australian Securities & Investments Commission v Matthews [1999] FCA 803

FEDERAL COURT OF AUSTRALIA

Australian Securities & Investments Commission v Matthews [1999] FCA 803 CONTEMPT – admitted contempt – breach of order made by the Court – order restraining respondent from publishing, or allowing to be published, securities reports on the internet – appropriate penalty – standard of proof applied in imposing sentence for contempt – range of available penalties – suspended term of imprisonment appropriate in the circumstances Corporations Law, ss 9, 18, 77, 92, 781, 1324(4) Federal Court Rules, O 40, r 6 Microsoft Corporation v Marks (No 1) (1996) 69 FCR 117, cited Witham v Holloway (1995) 183 CLR 525, cited R v O'Neill [1979] 2 NSWLR 582, cited Chow v Director of Public Prosecutions (1992) 28 NSWLR 593, cited R v Stephens (1976) 14 SASR 240, cited Deputy Commissioner of Taxation v Hickey [1999] FCA 259, followed Australasian Meat Industry Employees' Union v Mudginberri Station Pty Ltd (1986) 161 CLR 98, cited Australian Competition and Consumer Commission v Goldstar Corporation Pty Ltd, unreported, Federal Court of Australia, 6 November 1998, followed

AUSTRALIAN SECURITIES & INVESTMENTS COMMISSION v STEPHEN LEWIS MATTHEWS N 3017 OF 1999 JUDGE: SACKVILLE J DATE: 16 JUNE 1999 PLACE: SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY N 3017 OF 1999

BETWEEN: AUSTRALIAN SECURITIES & INVESTMENTS COMMISSION

Applicant

AND: STEPHEN LEWIS MATTHEWS

Respondent

JUDGE: SACKVILLE J

DATE OF ORDER: 16 JUNE 1999

WHERE MADE: SYDNEY

THE COURT ORDERS AND DECLARES THAT: 1. The respondent, Stephen Lewis Matthews, is guilty of contempt of this Court by his conduct in disobeying an order made by O'Connor J on 19 February 1999, in that the respondent (a) on 8 March 1999 allowed to be published a securities report, entitled "GIO, Goodman F, Flight Center, Omnitech", on the web site known as The Chimes and situated at http://www.chimes.com.au; (b) on 10 March 1999 allowed to be published two securities reports, entitled "CBA, Harvey Norman, Novogen, Viking Industries, WD&HO Wills" and "BHP, AMP, Redflex, Secure Networks, Liberty One, ICM", on the web site known as The Chimes and situated at http://www.chimes.com.au; (c) on 12 March 1999 allowed to be published a securities report, entitled "Cinimagic, Lion Nathan, Harvey Norman", on the web site known as The Chimes and situated at http://www.chimes.com.au; (d) on 13 March 1999 allowed to be published a securities report, entitled "HOY, will up profits due to Star Wars release...", on the web site known as The Chimes and situated at http://www.chimes.com.au; (e) on 15 March 1999 allowed to be published a securities report, entitled "Richfield Resources, PMP, Ozemail, Macquarie Bank, United Energy, Anglo Pacific", on the web site known as The Chimes and situated at http://www.chimes.com.au; and (f) on 15 March 1999 allowed to be published a securities report, entitled "One, TYA, CUP, WBC, ORI, AWA, ICT, FCL, FMH, IFA, CML, WNT, ABF", on the web site known as The Chimes and situated at http://www.chimes.com.au.