Insights

Former Nuix (ASX:NXL) executive accused of insider trading

The software giant is being rocked with news that ex-CFO Stephen Doyle, as well as his brother and father, are under investigation.
The post Former Nuix (ASX:NXL) executive accused of insider trading appeared first on The Motley Fool Australia. –

Authorities are investigating insider trading allegations against Nuix Ltd (ASX: NXL)’s just-resigned chief financial officer Stephen Doyle and his family.

The Australian Securities and Investments Commission (ASIC) on Tuesday took legal action to prevent Doyle’s brother, Ross, from leaving the country to return to his residence in Switzerland.

The court papers show the brothers are accused of trading Nuix shares with knowledge of inside information over January and February this year, as The Sydney Morning Herald first reported.

Their father Ronald Doyle is also a subject of the investigation.

“We are genuinely disturbed by the allegations concerning Mr Doyle and will fully assist ASIC in getting to the bottom of that matter,” said Nuix chair Jeffrey Bleich.

The Motley Fool has contacted ASIC for comment.

The allegations against the Doyles

Nuix listed on the ASX in December with an initial public offer (IPO) price of $5.31. The hype about its growth prospects sent the share price rocketing up immediately, to a high of $11.86 in January.

As chief financial officer, Stephen Doyle would have allegedly known about the downgrade to the company’s financial performance that was to be revealed to the public in February.

But Stephen is accused of tipping off his brother in January, according to the court affidavit.

ASIC accuses Ross Doyle of then selling 1.8 million Nuix shares that were held by a Singapore company named Black Hat. Ross also sold 200,000 shares held under his own name.

When the company announced the downgrade in February, the Nuix share price plummeted 32%.

The corporate regulator alleges that both the brothers have a financial interest in Black Hat, and the insider trading would have saved them in excess of $5.7 million in losses.

Persons convicted of insider trading of shares face up to 15 years’ jail.

Nuix’s unhappy start as ASX-listed company

Nuix shares closed Tuesday at $2.54, which is more than 70% down on the year.

The pressures of financial downgrades and ASIC investigations forced the departure of Stephen Doyle and chief executive Rod Vawdrey just 2 weeks ago.

Just last week, Nuix’s Sydney office was raided by the Australian Federal Police, as was Stephen Doyle’s inner-city apartment.

The post Former Nuix (ASX:NXL) executive accused of insider trading appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

5 things to watch on the ASX 200 on Wednesday

Nuix (ASX:NXL) shares continue to tumble on financial, legal concerns
ASX 200 Weekly Wrap: Share market breaks 5 week winning streak

These were the worst-performing ASX 200 shares last week

Why New Hope, Nuix, Pilbara Minerals, & Woolworths shares are dropping

Motley Fool contributor Tony Yoo owns shares of Nuix Pty Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia has recommended Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!