CALGARY, June 7, 2013 /CNW/ - The Alberta Securities Commission has
sanctioned David De Gouveia of Calgary for the market manipulation of
Magellan Minerals Ltd. shares from November 2008 to April 2009. An ASC
panel ordered that De Gouveia, who also goes by the name David Gouveia,
be banned from trading in or purchasing any securities or exchange
contracts for ten years, and be required to pay an administrative
penalty of $75,000, plus costs of $60,000.
In March 2013, the ASC panel found that De Gouveia had engaged in a
course of conduct that he knew or reasonably ought to have known would
result in or contribute to a false or misleading appearance of trading
activity in, and an artificial price for, shares of Magellan Minerals.
In issuing its sanctions, the ASC panel noted that "Gouveia's
misconduct distorted trading and price signals in the market for
Magellan Shares. This exposed market participants to direct financial
harm as a result of misinformed investment decisions."
The ASC panel rejected De Gouveia's explanation for these trading
activities and stated his behaviour exhibited hallmarks of market
manipulation, including: upticks (trading at a higher price than the
immediately preceding trade); high closes (closing trades on an
uptick); and wash trades (acting as both seller and purchaser in the
same transaction). The ASC panel also characterized some of De
Gouveia's trading as "uneconomic" (buying shares, then immediately
selling them at a loss).
A copy of the decision on can be found on the ASC website at www.albertasecurities.com.
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
SOURCE: Alberta Securities Commission
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