We all stock market participating retail investors, I personally think that we must be familiar with potential company's interest destroyers' tactics and strategies to protect our own interest.
Coincidently, the following terms in recent cases, we have to pay attention to be familiar, imo.
1. Misleading the Market
Waratah executive chairman pleads guilty to misleading the market
John Conroy The Australian May 13, 2016 4:19PM
Waratah Resources executive chairman Benjamin Kirkpatrick has pleaded guilty to misleading the market after the company announced it had struck a $100 million financing deal with the Bank of China.
Mr Kirkpatrick, who has chaired the Sydney-based commodities and resources management firm since 2013, allegedly failed to correct a misleading statement released to the ASX.
In October 2013, Waratah said it had established the $100m trade facility with the Bank of China which would underpin the firm’s upcoming deal activity. However, just nine days later, Waratah said no financing agreement had been reached.
"Between 14 and 25 October 2013, Mr Kirkpatrick failed to correct this announcement, thereby causing Waratah Resources to breach its continuous disclosure obligations," the Australian Securities & Investments Commission said today.
Mr Kirkpatrick was charged with aiding and abetting Waratah Resources in its failure to promptly tell the Australian Securities Exchange of material information.
In pleading guilty, Mr Kirkpatrick has asked that the sentencing court take into account his guilt in respect of an offence relating to his authorisation of false information to the market, ASIC said.
The offence carries a maximum jail penalty of five years and/or a $34,000 fine. Mr Kirkpatrick was committed to the NSW District Court for sentence, with the Commonwealth Director of Public Prosecutions is prosecuting this matter.
Waratah Resources shares were worth 43c during their 2011 peak at the height of the commodities boom, but are today changing hands at 0.9c a share.
Mr Kirkpatrick, before his role at Waratah, held a senior advisory position at Macquarie Bank and was a director at UBS in Sydney.
2. Insider Trading
Tuesday 17 March 2015 15-058MR Two men sentenced in Australia’s largest insider trading case
Joint media release with The Hon Josh Frydenberg, Assistant Treasurer and The Hon Kelly O’Dwyer, Parliamentary Secretary to the Treasurer
Two men were sentenced to jail terms of 7 years and 3 months, and 3 years and 3 months respectively in the Victorian Supreme Court today for their roles in Australia’s largest insider trading scheme totalling $7 million. The two men were charged in 2014 with insider trading, money laundering and abuse of public office offences.
This large and complex investigation by the Australian Federal Police (AFP) and Australian Securities and Investments Commission (ASIC) began after suspicious trading was identified in the foreign derivatives market.
The AFP and ASIC, working together through the AFP-led Fraud and Anti-Corruption Centre, discovered an employee of the National Australia Bank was receiving sensitive information from an employee of the Australian Bureau of Statistics (ABS). They were then using this information to enter into foreign exchange derivative products and profit from favourable movements in market prices.
The nine-month illegal trading activity resulted in profits of approximately $7 million dollars, which was restrained by the AFP-led Criminal Assets Confiscation Taskforce. This money has now been officially forfeited to the Commonwealth and is to be placed into the Confiscated Assets Account, from where it will be reinvested into the community.
Today's sentence is testament to the close working relationship between the AFP and ASIC, and the dedication and expertise of the specialised teams involved.
The arrest and conviction of an ABS officer for an unauthorised disclosure of statistics is unprecedented in the ABS’s 110 year history. Today’s sentence demonstrates that such actions which breach the trust placed in ABS officers will not go undetected or unpunished.
It also sends a clear message about the importance and emphasis that our enforcement agencies place on maintaining market integrity. Insider trading is a serious offence and a form of dishonesty – stealing information owned by others and exploiting it for a personal gain. It is also at complete odds with the expectation of Australian investors about a level playing field, where those with access to privileged information do not have an unfair advantage over other investors.
In 2014, the Government directed an extra $14 million in funding, which was confiscated from criminals, to increase the detection and disruption capabilities of law enforcement. This boost was part of the Coalition Government's commitment to taking the profit out of crime, and to disrupt and deter serious and organised crime in Australia by removing the proceeds and instruments of crime. Editor's note:
The men referred to in this media release are Lukas James Kamay, formerly of Clifton Hill, Victoria and Christopher Russell Hill, formerly of Belconnen, ACT (see 14-100MR for background). Mr Kamay was sentenced to a total of seven years and three months imprisonment, with a non-parole period of four years and six months. Mr Hill was sentenced to three years and three months imprisonment with a total non-parole period of two years.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions. Editor's note 2:
On 13 November 2015, Mr Kamay's appeal of his sentence was dismissed.
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