Finance director convicted for market manipulation

ASIC Cathie Armour Armada Capital

10 February 2021
| By Chris Dastoor |
image
image
expand image

Corporate finance director Ananda Kathiravelu has been convicted in the Supreme Court of Western Australia for conspiring to manipulate the market by attempting to inflate the value of the share price of Radar Iron Limited.

Kathiravelu was convicted of “conspiring with another to take part in, or carry out, whether directly or indirectly, transactions that had, or were likely to have, the effect of creating or maintaining an artificial price” for Radar Iron Limited shares traded on the Australian Securities Exchange (ASX) between 12 May, 2016, and 17 May, 2016.

He had been sentenced to 12 months imprisonment and could be released “forthwith on recognizance in the sum of $10,000 to be of good behaviour for seven months”.

The transactions occurred one day prior to the suspension of Radar shares from official quotation of the ASX, during which a capital raising by Radar took place.

Kathiravelu was a director of Radar and of the corporate finance firm, Armada Capital, which was the lead manager of the capital raising.

Armada Capital stood to gain a 5% fee of the funds raised in the capital raising if it successfully raised over $5 million.

The court found Kathiravelu’s offending was serious and that he had attempted to increase the attractiveness of the capital raising by artificially increasing the price of Radar shares immediately prior to the suspension.

The conviction meant Kathiravelu was automatically disqualified from managing corporations until 8 February, 2026.

He had previously pled guilty last August, after charges were brought due to an investigation by the Australian Securities and Investments Commission (ASIC).

Cathie Armour, ASIC Commissioner, said market manipulation eroded public confidence in the fair, orderly and transparent operation of the market.

“ASIC will take action against misconduct which undermines the fairness and integrity of our financial markets,” Armour said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

3 days 23 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 3 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 21 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days ago