A former client adviser with stockbroking firm DJ Carmichael has been banned from providing financial services for three years for market rigging.
James Pearson, of Perth, Western Australia, was given the ban after an ASIC investigation found he engaged in conduct inconsistent with the orderly operation of a financial market. In particular, he created a false or misleading appearance of active trading.
Between 12 May and 15 July 2011, Pearson placed 20 orders on the ASX as part of an on-market buyback of units in the LinQ Resources Fund.
ASIC found Pearson’s bids were for a purpose other than giving effect to the buyback. He was found to have placed the orders late in the day, causing the closing share price of the LinQ Resources Fund to be relatively high, creating a false or misleading appearance in the price for trading in the stock.
"Maintaining market integrity is fundamental for investor confidence in fair and efficient markets and ASIC will not hesitate to take action against individuals who seek to damage this," ASIC commissioner John Price said.
Pearson has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.