Aussie Macquarie Trader Gone Rogue
Top Macquarie Equities trader Newton Chan will learn the hard way that market manipulation is rather frowned upon “down under” after being sentenced to a maximum 20-month jail sentence for his role in illegal trading activities.
The 46 year-old broker, who served as divisional director and earned more than $500,000 annually, pleaded guilty to market manipulation intended to prop up the stock price of publicly traded Bill Express, The Australian reported.
Chan confessed to involvement in 904 trades of Bill Express shares, the article said. Approximately 90% of the trades occurred late in the day, and 82% exceeded existing bids. The $6 million spent on Bill Express trading mainly benefited Macquarie client Ian Christiansen and brother Hal Christiansen. Chan profited about $95,000 from shares in his own name, The Australian report said. Brokering commissions exceeded $34,000.
Supreme Court Justice Terry Forrest, who oversaw the trial, said the trader provided false answers when questioned about his trading activity by the Australian Securities & Investments Commission, according to the article.
Chan’s admission of guilt and assistance he later provided the ASIC reduced a potential three-year lock-up to just less than two years, Forrest said in the article.
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