THE AUSTRALIAN Federal Police has declined to go after disgraced former Gunns chairman John Gay by launching a proceeds of crime action.
Gay was convicted of insider trading last year after selling about $3 million worth of Gunns shares in 2009 while privy to price sensitive information.
Justice David Porter fined Gay $50,000 in Launceston's Supreme Court last August.
The Australian Securities and Investment Commission, which had prosecuted Gay, then referred it to the federal police for a possible proceeds of crime action.
Such action provides a scheme to trace, restrain and confiscate money or property received by breaking Commonwealth laws.
During court proceedings, prosecutors said Gay had benefited by about $800,000 when he made the illegal trade.
However Justice Porter said in his sentencing remarks that he was unable to determine how much Gay made from the sale.
A federal police spokeswoman said following an evaluation ``a decision was made not to proceed with any proceeds of crime action'' against Gay.
Shareholder activist Stephen Mayne, from the Australian Shareholders Association, said the decision was disappointing.
``I think it continues a theme of soft justice we've seen all the way through with this,'' Mr Mayne said yesterday.
``It's a lost opportunity to send a message about insider trading.''