ASX share scandal: Former director faces 10 years’ jail

A mining company director and his acquaintance have appeared in court after ASIC charged them with inside information offences.
The post ASX share scandal: Former director faces 10 years’ jail appeared first on Motley Fool Australia. –

miners in front of mining truck

Two men face 10 years’ in prison for alleged illegal share market manipulation.

Former director of Quantum Resources Ltd (now known as Nova Minerals Ltd (ASX: NVA)) Avrohom Mordechai Kimelman and Don George Evans of Inglewood, WA, appeared in Perth Magistrates’ Court on Friday facing multiple charges.

The Australian Securities and Investments Commission accused Kimelman and Evans of conspiring to manipulate NVA’s share price in November 2015.

Evans, who did not work for the company, acquired 1.5 million NVA shares on 5 and 6 November 2015. The corporate watchdog alleges he held inside information at the time.

The non-public tip related to NVA’s plans for a reverse-merger with a technology company from Israel. The combined company would have “likely” listed on the NASDAQ.

ASIC also alleges Evans told this information to other people between 4 and 6 November.

Records show NVA shares went from 3 cents at the end of October to 8 cents by 13 November 2015.

As well as the market manipulation charge, Evans faces 6 counts related to the acquisition of the shares and 3 counts involving telling others about the merger.

At the time of the alleged violations, a 10-year jail term was the maximum penalty for each of market manipulation, insider trading and forwarding inside information.

The maximum punishment was boosted in March 2019 to 15 years in prison.

The cases for both men were adjourned until 18 December.

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post ASX share scandal: Former director faces 10 years’ jail appeared first on Motley Fool Australia.

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