Victorian share trader faces ASIC short selling charges
A Victorian share trader has appeared in the Melbourne Magistrates Court on five short selling charges brought by the Australian Securities and Investments Commission (ASIC).
ASIC alleged that between May 28 and October 24, 2007, Giovanni Spagnolo of Northcote sold shares and options he did not own.
The instances were 1,850,000 shares in Rimfire Pacific Mining NL, 13,677,346 shares in Harrington Group, 1,176,790 shares in QR Sciences Holdings, 150,000 options in QR Sciences Holdings and 615,385 shares in Mindax.
ASIC alleged that in each case, Spagnolo applied for shares and options in capital raisings by the companies. Before they were issued he agreed to sell them on the stock exchange, however, Spagnolo failed to deliver the shares and options on the due date for settlement.
Spagnolo’s conduct came to ASIC’s attention via a referral from the Australian Securities Exchange.
He faces a maximum penalty for each offence of six months imprisonment and a fine of up to $2,750.
The matter will return to the Melbourne Magistrates’ Court on December 11, 2008.
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