Former Melbourne-based broker Allan Edward Gooderham has been banned from acting as a securities dealer representative or investment adviser for six years and has agreed to pay the Australian Stock Exchange (ASX) $50,000.
The ban follows an Australian Securities and Investments Commission (ASIC) investigation into Gooderham’s trading in Australian Authorised Investments (AAV) shares between October 1, 1997, and September 24, 1998.
“As a result of the investigation, the ASIC suspects that Mr Gooderham engaged in misleading and deceptive conduct and false trading by buying and selling AAV shares between client accounts of which he was a beneficiary,” ASIC said in a statement.
At the time, Gooderham was an affiliate of the ASX and a held authority to act as a representative of Epic Securities. The ASIC investigation stemmed from an ASX Market Surveillance Referral in May, 1998.
ASIC believes Gooderham failed to perform his duties as an Epic securities representative efficiently, honestly and fairly in relation to his trading of AAV shares.
The Commission alleges Gooderham traded on client accounts without authority; opened an account with Epic in the name of a deregistered company; charged commission to clients on transactions he was a party to; and operated accounts in which he held a beneficial interest without disclosure to his employer.
The ASX says it has entered into an agreement with Gooderham in which he has agreed to pay the ASX $50,000, surrender his affiliate status and refrain from reapplying to become an affiliate in the future.
In an unrelated case, ASIC has also brought charges against a former stockbroker’s consultant with creating a false or misleading appearance in respect of the share price of Bendigo Mining NL securities.
ASIC alleges that six seconds before the close of trading on March 28, 1994, Gerard Andrew John Farley offered to purchase 1000 shares in Bendigo Mining at 58 cents without holding an order from a client offering to purchase.
The matter will return to court next month.
