Market manipulator banned
The securities regulator has banned client adviser Rocco Musumeci from providing financial services on grounds that he engaged in market manipulation.
Musumeci, a former authorised representative of Bell Potter Securities between July 5 and November 27, 2006 in Wollongong, has received a four-year ban from the Australian Securities & Investments Commission.
According to ASIC, Musumeci engaged in market manipulation by trading shares in ASX-listed company, Generic Technologies Limited (GTG).
The investigation revealed that Musumeci received instructions to place buy orders in GTG between September and November 2006 which were likely to maintain an artificial price for trading in GTG shares. Musumeci allegedly made 228 trades involving approximately three million GTG shares on behalf of XY Inc.
ASIC executive director of enforcement Jan Redfern said the investigation was ongoing.
“ASIC is actively seeking to ensure that the market reflects the forces of genuine supply and demand,” she said.
“The maintenance of a fair and orderly market is of paramount importance and ASIC is working closely with the financial services industry to maintain market integrity and high standards of conduct.”
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