ASIC has banned Melbourne broker Mark McKenzie from providing financial services for three years, following an ASIC investigation which revealed he was involved in insider trading.
While employed as a broker with Citigroup Wealth Advisers, ASIC found that between 26 July and 8 August 2006 McKenzie possessed inside information regarding a possible takeover of Vision Systems Limited (VSL), a company listed on the Australian Securities Exchange.
ASIC found McKenzie purchased VSL shares on his own account and also advised four of his clients to purchase VSL shares.
McKenzie appealed to the Administrative Appeals Tribunal for a review of ASIC’s decision, and the tribunal has affirmed the three-year ban.
The corporate watchdog has also charged former Melbourne broker Newton Chan with eight counts of market manipulation.
The charges relate to Chan’s alleged manipulation of the share price of Bill Express (BXP), which is now in administration, while he was a senior client adviser at Macquarie Equities.
ASIC alleges that between 3 May 2006 and 26 March 2008, Chan used a number of trading accounts held by various individuals and entities with Macquarie Equities to purchase more than 34 million BXP shares worth over $6.1 million through hundreds of transactions.
ASIC alleges these transactions created, or were likely to create, an artificial price for BXP.
Chan has also been charged with falsifying order records by entering false names in Macquarie Equities’ electronic ordering system during this period, and with providing false or misleading information to ASIC during an examination.
The matter is currently being prosecuted by the Commonwealth Director of Public Prosecutions.
