ASC sanctions Calgary man for market manipulation
07 Jun, 2013, 12:59 ET
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 markets.
SOURCE: Alberta Securities Commission
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