ASIC’s investigation into the actions of a former Vanguard portfolio manager spanned Canada, the United States, United Kingdom, Hong Kong and Japan, it has been revealed.
Mark Hildebrandt has now pleaded guilty in the Supreme Court of Victoria to making improper use of his position at the company, which acts as responsible entity for a number of registered schemes and focuses on international equities.
He faces jail and/or a $220,000 fine.
Hildebrandt is accused of making improper use of his position as an employee of the index fund manager – allegedly netting himself $600,000 in the process, Wealth Professional
reported at the time of initial investigation.
The damning allegations outline 63 separate occasions between 18 May 2010 and 6 December 2010 where Hildebrandt placed orders for Canadian S&P/TSX 60 Index Standard Futures contracts on the Bourse de Montréal on behalf of Vanguard, while also placing substantially matching orders for the same financial product on his personal trading account.
ASIC alleged that the matching orders were placed such that Hildebrandt’s personal orders would trade against the Vanguard orders at prices that enabled Hildebrandt to profit at the expense of Vanguard or its registered schemes.
The investigation into the conduct of Mr Hildebrandt arose from a referral from the Bourse de Montréal.
After a contested committal hearing in June 2013, Hildebrandt was committed to stand trial in the Supreme Court of Victoria.
The upcoming sentencing hearing will take place on 7 and 8 May 2014.