Girl's April Fools' prank faces ASIC probe

A 16-year-old schoolgirl from northern NSW is set to be investigated by the corporate watchdog over an April Fools' prank.

Kudra Falla-Rickets, from Lismore, emailed out a fake press release to local journalists claiming gas drilling company Metgasco was pulling out of the area after community opposition.

The company did not find it amusing and issued its own statement to the Australian Securities Exchange stating the email was a hoax and there was no change to its operations.

Metgasco's chief executive Peter Henderson said the fake press release could have had a "devastating" effect on the company's share price and referred the prank to the Australian Securities and Investments Commission.

Under corporations law, false or misleading statements can attract a maximum penalty of 10 years in jail, a $765,000 fine, or both.

"We understand it's a practical joke," Mr Anderson told Fairfax Media, "but it was fraudulent."

Kudra, whose father is a coal seam gas activist, reportedly did not realise how much trouble she had stirred until she was called into her principal's office at school.

The prank is reminiscent of the case of Jonathan Moylan, a young activist being prosecuted by ASIC for sending a fake media release last year saying Whitehaven Coal had lost financing for a new mine.

The hoax temporarily wiped more than $300 million off Whitehaven's share value.

Kudra is unlikely to face such prosecution, however, because she is a minor and no harm was caused to Metgasco's share price.

One Melbourne University law expert said ASIC was more likely to issue a stern word to the schoolgirl, "rather than move towards any sort of enforcement action".

Source:The Sydney Morning Herald

Author: Erin Tennant, Approving editor: Matthew Henry