In a statement, ASIC said Ananda Kathiravelu, who was a director of corporate finance firm Armada Capital, had been convicted in the Supreme Court of Western Australia and sentenced to 12 months imprisonment, released forthwith on recognizance in the sum of $10,000 to be of good behaviour for seven months.
Mr Kathiravelu was convicted of conspiring with another to take part in transactions that had, or were likely to have, the effect of creating or maintaining an artificial price for Radar Iron Limited shares traded between 12 May and 17 May 2016.
The transactions occurred one day prior to the suspension of Radar shares from official quotation of the ASX, during which a capital raising by Radar took place. Mr Kathiravelu had been a director of Radar and his corporate advisory firm stood to gain a 5 per cent fee of the funds raised in the capital raising if it successfully raised over $5 million.
The court found Mr Kathiravelu’s offending was serious and that he had attempted to increase the attractiveness of the capital raising by artificially increasing the price of Radar shares immediately prior to the suspension.
"Market manipulation erodes public confidence in the fair, orderly and transparent operation of the market", ASIC commissioner Cathie Armour said.
"ASIC will take action against misconduct which undermines the fairness and integrity of our financial markets."
The regulator said Mr Kathiravelu had also been disqualified from managing corporations for five years.
