25/01/2022 - 11:17

ASIC bans Kathiravelu over Radar scheme

25/01/2022 - 11:17

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The corporate watchdog has barred Ananda Kathiravelu from providing financial services over a market manipulation scheme that almost landed him behind bars.

ASIC bans Kathiravelu over Radar scheme
ASIC has formally banned the corporate advisor from providing financial services and controlling a financial services business.

The Australian Securities and Investments Commission has barred Perth-based adviser Ananda Kathiravelu from providing financial services for the next three years over the 2016 market manipulation scheme that almost landed him behind bars.

Last year, Kathiravelu was found guilty of conspiring to manipulate the market over a scheme in which he artificially inflated the price of shares in iron ore exploration company Radar Iron ahead of its acquisition of tech company Weebit.

He was a director of both Radar Iron and corporate finance firm Armada Capital in January 2016 when the acquisition was floated, with the two companies signing an agreement under which Armada stood to make 5 per cent if $5 million in capital was raised.

Kathiravelu and an Israeli businessman exchanged a series of WhatsApp messages about artificially increasing the price of Radar’s shares to 5.2 cents ahead of a scheduled trading halt.

More than 212,000 Radar shares were acquired at $0.05 and 87,469 Radar shares at $0.051 in the 24 hours before the suspension of Radar shares from the ASX, activity that prompted a 12-month investigation by ASIC.

Mr Kathiravelu was sentenced to 12 months' imprisonment for his role in the scheme, but was released on a $10,000 recognisance.

Now, ASIC has formally banned the corporate adviser from providing financial services and controlling a financial services business.

Kathiravelu holds the right to appeal the decision.

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