Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Brian Henry admits market manipulation charges, fined $130k

Brian Henry admits market manipulation charges, fined $130,000

By Jonathan Underhill

Aug. 7 (BusinessDesk) - Brian Henry, a venture capitalist who helped found Diligent Board Member Services, has admitted breaches of the Securities Markets Act by manipulating the company's shares in early 2010.

At the Auckland High Court, Henry admitted his trading in Diligent shares contravened the law. He was fined $130,000.

Henry admitted that on two occasions he executed what are known as ‘wash trades’, where he was both buyer and seller, moving the stock price without any change of ownership. On four other occasions gave "a false or misleading appearance of trading in Diligent shares" by 'layering,' where multiple buy and sell orders are placed without being completed to give the impression of more activity and force up the price.

“The conduct that Mr Henry engaged in undermines the development of a fair, efficient, and transparent financial market," Justice Venning said in his judgment. "Such market manipulation is likely to undermine the integrity of the NZX and jeopardise the confidence of both overseas and domestic investors in the NZ security markets. A pecuniary penalty is appropriate."

The Financial Markets Authority said it was the first case of market manipulation brought in New Zealand.

US-based Henry had said last year that the FMA's case had no merit, while confirming he had made “errors” in trading the shares in early 2010. He was a former chief executive of Diligent, leaving the company in 2009.

In a separate statement, stock market operator welcomed the High Court decision, saying the successful prosecution "reflects the importance NZX places on upholding the integrity of the markets it operates."

The decision comes a day before Diligent is due to report its first-half results and expected to post reported net profit of $5 million, up from $3.3 million a year earlier, according to analysts at First NZ Capital.

Diligent shares rose 2.4 percent to $4.20 and have gained 7.9 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news