Market manipulation accused faces court on two charges
A Queensland investor has appeared in the Brisbane Magistrates Court today charged with two counts of market manipulation.
The court appearance for 57-year-old Thai Quoc Tang, of Durack, follows an investigation by the Australian Securities and Investments Commissions (ASIC) into the trading of shares in biological technology company Tissue Therapies Limited (TIS) between 23 December 2010 and 24 January 2012.
Over the 13-month period of the trades Tang was the sixth largest shareholder and was engaged in extensive trading through 11 different online trading accounts.
In bringing the case to court ASIC alleged that in the specified period Tang conducted 100 separate ‘price support' trades of TIS shares. These trades were designed to create a false or misleading appearance with regard to the TIS share price, as
the trades were undertaken for the primary purpose of increasing the TIS share price.
ASIC also alleged that between 27 April 2011 and 5 September 2011 Tang conducted 41 additional ‘wash trades' in TIS, in which he executed both sides of the trade. This action was allegedly aimed at creating the appearance of trading activity in the market without any change in beneficial ownership of the shares.
Tang was not required to enter a plea and was released on conditional bail and required to surrender his passport to ASIC. He was also committed for trial to the Brisbane District Court on a date to be fixed.
Each charges carries a maximum penalty of $495,000 or imprisonment for 10 years or both.
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