An investor has been sentenced to 12 months’ imprisonment for manipulating the price of ASX shares.
The supreme court of Western Australia last week handed down the penalty to Don George Evans of Woodlands, Western Australia for conspiring to illegally push up the stock price of an ASX-listed mining company.
The court heard that Evans met then-director of Quantum Resources, Avrohom Kimelman, and corporate consultant Benjamin Heath Cooper to come up with a plan to pump up the Quantum share price to a certain level.
They then executed the manipulation on 16 November 2015 by coordinating a series of trades and encouraging other investors to buy in.
Quantum Resources is now known as Nova Minerals Ltd (ASX: NVA).
During sentencing, Justice McGrath stated the sentence needed to be sufficient to deter others who could be tempted into such behaviour.
“Compliance⦠is vital to maintain market integrity and promoting the confident and informed participation of investors in the financial market operated by the ASX.”
Evans was also prohibited from managing corporations for five years.
All three conspirators now sentenced
According to Australian Securities and Investments Commission deputy chair Sarah Court, Evans’ imprisonment wraps up its actions in relation to Quantum shares after the other two people involved were previously sentenced.
“ASIC is committed to acting against conduct that damages the integrity of Australiaâs markets,” she said.
“Market manipulation undermines investor confidence and ASIC will take strong and considered action to combat it.”
Evans was released immediately after the sentencing hearing on a recognisance of $5,000, contingent on two years of good behaviour.
Kimelman was sentenced to 18 months’ imprisonment back in November 2021. Cooper was given 15 months in a decision handed down in December last year.
The post ASX investor gets 12-month sentence for share price manipulation appeared first on The Motley Fool Australia.
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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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