06/05/2013 - 13:58

Perth broker banned for three years

06/05/2013 - 13:58


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Perth broker banned for three years

Australia’s corporate regulator has banned a WA-based investment adviser for three years for market rigging.

The Australian Securities and Investments Commission said former DJ Carmichael client adviser James Pearson, not to be confused with the Chamber of Commerce and Industry WA chief executive of the same name, created a false or misleading appearance of active trading between May 12 and July 15, 2011.

ASIC said Mr Pearson placed 20 orders on the ASX as part of an on-market buyback of units in the LinQ Resources fund, with an investigation finding the bids were for another purpose.

Mr Pearson was found to have placed the orders late in the day, causing the closing share price of the LinQ Resources Fund to be relatively high, creating a false or misleading appearance in the stock’s movements.

“Maintaining market integrity is fundamental for investor confidence in fair and efficient markets and ASIC will not hesitate to take legal action against individuals who seek to damage this,” ASIC commissioner John Price said.

Mr Pearson has the right to appeal the decision at the Administrative Appeals Tribunal.


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