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Offence title: |
Market manipulation |
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Act: |
1041A Corporations Act |
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Offence: |
A person must not take part in, or carry out, directly or indirectly, in Australia or elsewhere: (a) a transaction that has or is likely to have; or (b) 2 or more transactions that have or are likely to have; the effect of: (c) Creating an artificial price for trading in financial products on a financial market in this jurisdiction; or (d) Maintaining an artificial level, a price, (whether it was already artificial or not) for trading in financial products in a market in this jurisdiction. Note: Failure to comply with this section is an offence: s. 1311(1)
Note: Failure to comply with this section is a contravention: s.1317E and 1317S
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Penalty: |
15 years imprisonment |
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Summary/Indictable/mixed: |
Indictable |
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Jurisdiction: |
District or Supreme Court |
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How committed: |
In order to inflate the value of a business, the Managing Director makes a significant purchase of shares, such that the market sees and follows the price increase, thereby causing the company to be artificially valued and the shares trade for a greater price than the true value. |