A former chief executive of Select Vaccines will have to pay a penalty of $80,000 for its illegal activities inside the company.

Dr. Martin Soust received an order on Friday from the Federal court to pay not only the fine, but will also be banned from the corporate world for 10 years for buying shares in his listed biotech company to push the share price higher, thus, accumulating himself a $24,500 short-term pay bonus.

The Australian Securities and Investments Commission has previously appealed for the court to ban Dr. Soust for eight years and impose a severe fine of $100,000.

Justice Alan Golberg, who delivered the verdict, explained that Dr. Soust lied to shareholders regarding the share purchases and even concealed the purchase. Soust claimed that the shares were acquired by his mother.

Justice Golberg added that the former chief executive behaved in a dishonest manner when he repeated the offense from December 2007 to August 2008. He bought the shares from the company when he resigned.

"Each step in the defendant's pattern of behaviour was calculated and deliberate," Justice Goldberg said.

The judge added that the penalty of Dr. Soust was determined from the defendant's lack of remorse, and repeated instances of dishonesty in buying shares and concealing it.

Also in Judge Golberg's statement, the defendant deceived the company, made fake documents "designed to perpetuate his deceit and dishonesty," and resigned with an innocent explanation for the secret purchases of the shares.

Dr. Soust was appointed as chief executive of Australian Ski Federation during the 1990's and became an officer in Athletics Australia between 1998 to 1999.

Justice Goldberg said a court does not tolerate dishonest acts in corporations.

"(It is) necessary to make it clear to directors and other persons in the commercial community that personal dishonesty in acting as a director of a corporation will not be condoned by the court and will be visited with severe sanctions," he said.