Former financial adviser convicted for dishonest conduct
In the first criminal prosecution for offending of this kind, Mark Kawecki has been convicted and fined $30,000 for engaging in dishonest conduct related to attempts to artificially satisfy the minimum spread requirement for companies seeking to be admitted to the Australian Securities Exchange (ASX).
The former financial adviser from Frankston, Victoria, was sentenced in the Melbourne County Court and was disqualified from managing corporations until 4 November, 2025.
Under ASX listing rules, the minimum spread requirement specified a company must hold a minimum number of unrelated shareholders before its shares could be quoted and traded on the ASX to demonstrate sufficient investor interest and ensure liquidity.
The Australian Securities and Investments Commission (ASIC) alleged between 19 January, 2015, and 23 December, 2016, Kawecki applied for shares in four companies that were undertaking initial public offerings or were in the process of re-listing on the ASX.
It was alleged the applications for shares in these companies contained false information about the beneficial holder of those shares or false information about the applicant’s address.
The Crown submitted that Kawecki’s conduct was designed to artificially satisfy the minimum spread requirement in the ASX listing rules.
Kawecki was charged with and pleaded guilty to two counts of dishonest conduct in relation to a financial product in contravention of sections 1041G and 1311(1) of the Corporations Act.
The Commonwealth Director of Public Prosecutions prosecuted the matter.
AUTHOR
Chris Dastoor
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