A Melbourne man has been convicted of dishonest conduct after he was found manipulating the criteria for companies seeking to be listed on the ASX.
In the first criminal prosecution of this kind, Mark Damion Kawecki of Frankston, Victoria has been banned from managing corporations for five years and fined $30,000.
Under ASX rules, a company must have a minimum number of unrelated shareholders before it can be listed. This “spread requirement” is to demonstrate sufficient investor interest and a basic level of liquidity.
According to the Australian Securities and Investments Commission (ASIC), Kaweki applied for shares in four companies that were attempting an initial public offering (IPO) or a relisting.
ASIC alleged that these applications had false information about the beneficial holder of the stocks or false addresses.
Prosecutors told the court that this dishonesty was to artificially meet the ASX’s spread requirement.
Kaweki was charged and pleaded guilty to two counts of dishonest conduct, breaching sections 1041G and 1311(1) of the Corporations Act.
He was a financial adviser at the time of the offences, but back in 2018, ASIC banned him from practising for seven years.
ASIC reminded all parties participating in an IPO or relisting of their obligations to follow both the ASX Listing Rules and the Corporations Act 2001.
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks 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.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
Find out the names of our 3 Post COVID Stocks – For FREE!
*Returns as of 6/8/2020
More reading
- All eyes on the REA Group (ASX:REA) share price after Q1 results
- Austal (ASX:ASB) share price on watch after vessel delivery
- 2 ASX shares that are growing profit very fast
- 5 things to watch on the ASX 200 on Friday
- Andromeda Metals (ASX:ADN) share price climbs 18%
Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Melbourne man found guilty of lying to ASX appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/34YE6pz
Leave a Reply