ASIC has acted against a Victorian share trader who faced court yesterday on five charges of short-selling.
Giovanni Spagnolo appeared in the Melbourne Magistrates' Court following ASIC's allegations that between May and October 2007, he sold shares and options that he did not own.
ASIC alleges in each of the five cases Spagnolo applied for shares and options in capital raisings by the companies.
Before they were issued he agreed to sell them on the stock exchange. However, Spagnolo failed to deliver the shares and options for settlement on the due date.
Spagnolo's conduct came to ASIC's attention via a referral from the Australian Securities Exchange (ASX).
The matter will return to the Melbourne Magistrates' Court on December 11, 2008.
ASIC has also banned Toowoomba-based financial adviser Desmond Blinco from providing financial services for a period of 15 months.
The corporate watchdog found that he was bankrupt while acting as an authorised representative of AMP Financial Planning and AMP General Insurance Distribution.
ASIC's investigation found AMP Financial Planning and General Insurance Distribution were unaware of Blinco's undischarged bankruptcy status.
It is understood that Blinco became bankrupt as a result of a debtors' petition.
While there was no suggestion of dishonesty in any of Blinco's financial dealings, the regulator said disciplinary action still had to be taken.
"Public confidence in the financial system would be eroded if no action were taken in respect of a financial adviser who has been declared bankrupt," an ASIC statement said.
