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

 


UPDATE: Brian Henry admits market manipulation charges

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

(Adds Henry comment)

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 statement, Henry said he was satisfied the settlement amount reflected the agreed summary of facts, and that he'd never disputed the trading errors. He sought advice from the FMA's predecessor, the Securities Commission, in 2010 about his obligations, and said he wasn't surprised no action was taken at the time.

“However a year ago – three years after the trades - the FMA decided that they had a valid point to make about the integrity of the market, and I respect that," Henry said. “It is disappointing that it has taken four years and extensive legal fees for both parties to get to this point."

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

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news