Former Genetic Technologies director, Dr Mervyn Jacobson and his daughter, Mrs Tamara Newing, have today appeared in the Melbourne Magistrates’ Court on charges of market manipulation laid by ASIC.

Dr Jacobson, also a substantial shareholder of Genetic Technologies Ltd (GTG), faces 319 counts of market manipulation regarding his involvement in the trading of company shares between 22 April 2005 and 2 November 2006.

On 12 December 2008, Dr Jacobson resigned with immediate effect as a director of GTG.

Mrs Tamara Newing, of Hawthorn East, Victoria, is charged with 353 counts of market manipulation regarding her involvement in the trading of GTG shares between 18 April 2005 and 2 November 2006.

ASIC alleges that Dr Jacobson and Mrs Newing arranged for orders to be placed on the ASX for the purchase of GTG shares through a number of different stockbroking firms. These orders, according to ASIC, were likely to create or maintain an artificial price for trading in the company’s shares.

Dr Jacobson and Mrs Newing were released on bail subject to a number of conditions including that:

• Dr Jacobson provide surety for an amount of $800,000;

• Mrs Newing provide surety for an amount of $400,000 and not travel overseas except between 15 December 2008 and 10 January 2009; and

• Mrs Newing surrender her passport to ASIC by no later than 4:00pm on 12 January 2009 and on her return not approach any international point of departure.

Dr Jacobson and Mrs Newing are both scheduled to appear in the Melbourne Magistrates’ Court on 23 April 2009 for their respective committal mentions.

The Commonwealth Director of Public Prosecutions is prosecuting the matter.

Background

On 8 July 2008, Mr Rocco Musumeci of Rockdale, New South Wales, was indicted on three counts of market manipulation following his involvement in the trading of GTG shares (refer ASIC media release 08-157).

On 10 November 2008, Mr Richard John Wade, of East Melbourne, Victoria, pleaded guilty to six counts of market manipulation with regard to his involvement in the trading of GTG shares (refer ASIC media release AD08-58).

Further proceedings in respect of Mr Wade and Mr Musumeci will be heard on 18 and 19 December 2008 in the Melbourne County Court.

Editor's note

On 4 February 2010, Mrs Tamara Newing and Dr Mervyn Jacobsen were committed to stand trial in the County Court of Victoria on the market manipulation charges.