Resolute CEO Welborn says broker sold shares without permission
Resolute Mining boss John Welborn.
The firm run by Perth’s most prominent stockbroker sold off $1.75 million of shares owned by Resolute Mining chief executive John Welborn allegedly without his permission.
In documents filed with the Australian Securities Exchange late on Friday, Mr Welborn said he had been advised that more than 1.2 million of his shares in Resolute were sold in March, claiming the sale was an “unauthorised transaction”.
The Australian revealed last week that Somers and Partners — the firm run by Andrew Frazer, who is considered one of the country’s most prolific brokers — was the brokerage at the centre of the disputed trades.
But Mr Frazer yesterday hit back at the suggestion that his firm had acted without proper authorisation, telling
The Australian that all transactions had been in line with client directions and that the cash proceeds from the Resolute shares had been transferred to Mr Welborn’s nominated bank account.
“They were not sold without Mr Welborn’s permission,” Mr Frazer said. “The transaction was in line with Somers’ email and text instructions from Mr Welborn.” Somers is understood to have self-reported the incident to the Australian Securities & Investments Commission in keeping with its regulatory commitments, although it is believed there has been no formal complaint to ASIC from any third party.
Mr Welborn, a former investment banker who played six rugby Tests for the Wallabies, is one of several high-profile Perth businesspeople who hold share accounts with Somers.
The trade in question happened in mid-March but was only disclosed to the ASX last week after questions from
The Australian.
Mr Welborn declined to comment yesterday about what he said was a “deeply distressing” issue. He continues to hold just under 900,000 Resolute shares plus a host of performance rights.
Mr Frazer is a veteran of the Perth stockbroking scene. But his trading history has not been without its controversy. In 2008 he was bailed out by mining magnate Andrew Forrest after he ran up big losses during the global financial crisis.
Mr Frazer says Somers is in strong health, with the firm posting a $1.7m profit in 2016 and recently executing a string of successful equity raisings for junior resource stocks.
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