media release (15-359MR)

Healthzone director jailed for market manipulation

Published

Mr Robert Dulhunty, a former director of Healthzone Limited (Healthzone) has been sentenced in the NSW Supreme Court for market manipulation, following an ASIC investigation.

Mr Dulhunty, of Watsons Bay, NSW was sentenced to 18 months in prison, to be released on a recognisance after serving six months, to be of good behaviour for the balance of the term, for one count of conspiring with others to manipulate the share price of Healthzone between 1 May 2007 and 12 December 2010.

Mr Dulhunty was a director of Healthzone between 4 May 2007 and 27 March 2009. He also provided corporate finance and advisory services to Healthzone.

During the conspiracy period in which Mr Dulhunty was involved, Mr Dulhunty and his co-conspirators completed a total of 377 manipulative trades on the ASX  at the time of various corporate activities by Healthzone, including capital raisings and acquisitions.

Mr Dulhunty and his co-conspirators used 15 separate trading accounts. These accounts were either in their own names, or in the names of third parties acting on instructions from Mr Dulhunty and his co-conspirators.

During this period, Mr Dulhunty and his co-conspirators purchased 1,797,424 Healthzone shares for a total outlay of $679,475.

ASIC Commissioner Cathie Armour said, 'Market manipulation is a very serious offence. I reiterate ASIC's message that we have the people and systems in place to detect, investigate and prosecute suspicious trading activity and will vigorously pursue market misconduct'.

The matter was prosecuted by the Commonwealth Director of Public Prosecutions.

Background

Healthzone listed on the ASX in November 2006 following an initial public offering and was delisted when it was placed into external administration and receivership in November 2011. Healthzone went into liquidation in March 2012.

Media enquiries: Contact ASIC Media Unit