The charges against Paul Gerard Choiselat arose out of an ASIC request that the Australian Securities Exchange (ASX) monitor trading activity relating to the collapse of Opes Prime Stockbroking.
At the time of the alleged offending, Mr Choiselat was a director of Q Ltd (2001-2013) and Jumbuck Entertainment Ltd (2004-2008).
Mr Choiselat faces five charges of market manipulation of shares in relation to these two companies.
It is alleged that he manipulated shares in Q Ltd and Jumbuck Entertainment to reduce a margin position in relation to shares lent to Opes Prime and then later manipulated shares to boost a proof of debt claim against the liquidators of Opes Prime.
The effect of an increase in the debt claim against the liquidators of Opes Prime would have been to reduce the total proportion available to other creditors at that time.
Opes Prime collapsed in March 2008 owing around $630 million, and in August 2009, a scheme of arrangement paid out approximately 37 cents in the dollar to creditors.
Mr Choiselat is also alleged to have manipulated shares in Q Ltd to support a rights issue by the company.
In addition to the market manipulation charges, Mr Choiselat faces 20 charges relating to a failure to disclose his offshore interests in Q Ltd and Jumbuck Entertainment to the respective company boards, the ASX and to ASIC.
