ASX has brought in more restrictions on future dealings with...

ASX has brought in more restrictions on future dealings with market rigger Dean Scook.

Rebecca Urban From: The Australian December 01, 2009.

A MINING float backed by convicted market rigger Dean Scook will begin trading today, after the Australian Securities Exchange demanded restrictions on future dealings with the businessman. Dourado Resources, which has acquired prospective mining projects from Scook for $6 million, will be prevented from issuing him new shares and options, and from buying further assets from his companies.

The ban also extends to transactions with his family members. Following Scook's 2007 conviction for share-trading offences, his subsequent 14-month jail sentence and five-year corporate ban, many of his companies are now registered to his daughter, Amy Taylor, and son-in-law Tim Leahy.

Dourado, which has attracted Cape Lambert Iron Ore to its share register, initially intended to list in October, having successfully raised $4.3 million. However, the ASX delayed the float while it looked into Scook's influence over the group as a result of his 40 per cent shareholding in the operation.

Dourado chairman Emilio Pietro Del Fante and non-executive director Daryl Smith were recently involved in an unsuccessful bid by another of Scook's sons-in-law, Paul Taylor, to spill the board of Aurium Resources, which has previously acquired mining projects from Scook -- most recently while he was in Perth's Hakea Prison.

Aurium, along with the closely aligned Yellow Rock Resources and Greater Pacific Gold (now known as Padbury Mining), purchased almost a dozen companies over three years exclusively from entities associated with Scook, netting him close to 600 million shares and options.

However, the disgraced businessman will be unable to trade in his Dourado stock, after the ASX placed a two-year holding lock on his 38.9m shares and 19.4m options. The exchange has also instructed that the stock be transferred from Scook's private company Whitvista, which is run by Mr Leahy, into a trust account controlled by Ray McManus, who is a partner at the accounting firm that assisted Dourado on the float. And while Mr Taylor remains a beneficiary of the trust, he has agreed to step off the board of its trustee company.

An ASX spokesman said the concerns about Scook's control over Dourado had been addressed by the undertakings.

Cape Lambert boss Tony Sage said it was Dourado's proximity to promising tenements held by Sandfire Resources that attracted him to the float. Cape Lambert would attempt to increase its 2.45 per cent stake by buying more shares on market, he said.
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