ASC finds Calgary man engaged in market manipulation
CALGARY, March 15, 2013 /CNW/ - The Alberta Securities Commission (ASC) has found that David De Gouveia breached Alberta securities laws and acted contrary to the public interest by creating a false or misleading appearance of trading activity in, and artificial prices for, Magellan Minerals securities.
An ASC panel found De Gouveia engaged in a pattern of trading that involved: upticks (trading at a higher price than the immediately preceding trade); high closes (closing trades on an uptick); wash trades (acting as both seller and purchaser in the same transaction); and uneconomic trades (selling and then immediately buying shares at a higher price.)
The ASC panel rejected De Gouveia's explanation for this trading behaviour, ruling the characteristics and patterns of De Gouveia's trading "are not attributable to incompetence, inattention or mistake. Rather, his trading exhibited multiple examples of what have been recognized as 'hallmarks' of market manipulation" and that this "was the behaviour of an alert, observant and active trader willingly sending price signals not prompted by a bona fide investment motivation."
ASC staff and De Gouveia have until March 22, 2013 to inform the ASC panel if they intend to call any new evidence regarding possible sanctions and if they wish to make submissions on what, if any, orders the ASC panel should make against De Gouveia.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted to foster a fair and efficient capital market in Alberta and to protect investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
SOURCE Alberta Securities Commission