funny Stevjd, yo post reads like an appeal to the Court for a lighter sentence. I digress... AS pumping is a topic today, see following article; source = fin.
...May 3, 2023 – 6.03pm Fin Review A trader who used stock forum HotCopper to pump and dump about 20 penny stocks using 13 trading accounts has been given a jail term of 2½ years, but is being released immediately on a five-year good behaviour bond.**riel Govinda, who used the online identity Fibonarchery, pleaded guilty to 23 counts of market manipulation and 19 charges of illegal dissemination of information relating to the manipulation in mid-2022. Pump and dump schemes are when people hype up stocks to inflate their price then sell the shares as they become overvalued, leaving new investors stuck with the losses once the shares return to normal levels.A search of Govinda’s home in 2015 found a notebook detailing how he used HotCopper to convince other traders to buy into shares, pushing the price up, before he sold out at the end of the day.“Buy big parcels of small cap cash backed resource shares at reasonable price, alert H.C Daytraders to the action sell to them at higher price at end of day,” his notebook read. Other entries included that he would “sell to self to create illusion of volume” and “sell stock down to yourself then buy stock up to yourself. Buy cheap, make it expensive again, sell to others.”On Wednesday, ASIC announced Govinda had been sentenced in Melbourne’s County Court to 2½ years’ imprisonment, although he was released immediately on a five-year recognisance, or bond, of $5000 and fined $42,840.
Govinda is the first person sentenced under the Corporations Act dissemination provisions for market manipulation. Dummy bids Govinda’s charges relate to conduct between September 2014 and July 2015. He used 13 different trading accounts, held in the names of relatives and friends, to manipulate 20 different listed stocks. His conduct occurred before reforms in March 2019 which increased maximum penalties. Those same offences now could lead to a 15-year jail term.Buying and selling through multiple accounts is known as wash trading, where it appears the stock is being actively traded but is simply being traded by one person. ASIC said Govinda also used dummy bids, making it appear there was demand for the stock, and lifting the price.He ran the schemes across mining exploration and resources, including Brumby Resources, BBX Minerals, AVZ Minerals, Zeus Resources, Stratum Metals, 3D Resources, Taruga Gold, Haranga Resources, Regalpoint Resources, Altura Mining and Alchemy Resources.
Others included environmental consulting and technology provider Pacific Environment, hot water and cooling systems distributor Quantum Energy, tracking system developer Bluechiip, biotechnology outfit Sun Biomedical, operator of e-commerce brands Disruptive Investment, mobile phone supplier Cellnet and electronic components maker Rectifier Technologies.The illegal trading involved share purchases worth $3.1 million, excluding brokerage.“Individuals who look to social media, whether that be online forums or via platforms such as Instagram and Facebook, to promote stocks or financial products, should take notice of today’s court decision,”
ASIC deputy chairwoman Sarah Court said.“Finfluencer conduct, whether by using social media to manipulate the market, using a platform to profit from promoting manipulation done by others, or to promote financial products you are not licensed to promote, can result in serious consequences.”
As always, dyor
BAS Price at posting:
11.0¢ Sentiment: None Disclosure: Not Held
