10-49AD Former Macquarie broker pleads guilty to market manipulation charges
Monday 15 March 2010
Mr Newton Chan of Balwyn, Victoria, appeared on Friday 12 March 2010 in the Melbourne Magistrates Court and pleaded guilty to eight counts of market manipulation contrary to section 1041A of the Corporations Act 2001.
The charges, brought by the Australian Securities and Investments Commission (ASIC), relate to Mr Chan’s alleged manipulation of the share price of Bill Express Ltd (BXP) (now in liquidation) while he was a senior client adviser at Macquarie Equities Ltd.
ASIC alleges that between 3 May 2006 and 26 March 2008, Mr Chan used a number of trading accounts held by various individuals and entities with Macquarie Equities Ltd to purchase more than 34 million BXP shares, worth over $6.1 million, through hundreds of transactions. ASIC alleges these transactions created or were likely to create an artificial price for BXP.
Mr Chan also pleaded guilty to one count of providing false or misleading information to ASIC contrary to section 64 of the Australian Securities and Investments Commission Act 2001.
Mr Chan has been committed to the Supreme Court of Victoria for plea hearing on 21 June 2010.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.
On 20 August 2009 Mr Chan was banned by ASIC from providing financial services for a period of five years. ASIC’s investigation into alleged market manipulation of Bill Express shares follows a referral from the Australian Securities Exchange.
ASIC Website: Printed 09/09/2010
