27/05/2009 - 15:36

Perth brokerage faces $235,000 fine

27/05/2009 - 15:36

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Perth-based State One Stockbroking faces a $235,000 fine for alleged manipulative trading after the industry's appeal tribunal approved an increased penalty.

Perth brokerage faces $235,000 fine

Perth-based State One Stockbroking faces a $235,000 fine for alleged manipulative trading after the industry's appeal tribunal approved an increased penalty.

The Australian Securities Exchange asked the tribunal if it would be allowed to impose higher penalties as a deterrent measure.

State One was facing a collective $175,000 fine however due to the approved increase the brokerage faces a $235,000 fine.

An ASX spokesperson told WA Business News that State One can either pay the fine within 28 days or challenge the penalty, which will then go to court.

Comment was being sought from executive chairman Alan Hill at time of publishing.

Mr Hill has been found not to have been personally involved in the breaches.

ASX claims that between October 2006 and March 2007, State One entered over 3,000 market transactions which did not involve any change in beneficial ownership.

"The transactions were carried out by employees of State One acting as day traders trading as Principal on State One accounts which they individually managed," ASX said in a statement.

"It was alleged that, because the transactions involved no change of beneficial ownership, they thereby created a false or misleading appearance with respect to the market..."

ASX added that State One did not contest the claim.

Additionally, ASX said that State One is guilty of "unprofessional conduct because it did not respond adequately when ASX Surveillance first brought the transactions to its attention".

In addition, the ASX claims State One entered four small volume bids above an existing priority bid price in a move to sell a larger parcel of shares at the inflated price.

State One has denied both allegations however the Disciplinary Tribunal has proved the breach, ASX said.


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