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Monday 28 September 2020

20-223MR Avrohom Kimelman and Don Evans charged with market manipulation offences

Former Quantum Resources Ltd (Quantum) director Avrohom Mordechai Kimelman, of St Kilda East Victoria, and Don George Evans, of Inglewood WA, appeared on Friday 25 September 2020 in Perth Magistrates’ Court charged with alleged market manipulation offences.

ASIC alleges that, on 16 November 2015, Mr Kimelman and Mr Evans conspired with each other to manipulate Quantum’s share price, in contravention of sections 1041A and 1311(1) of the Corporations Act 2001 (Cth) and section 11.5(1) of the Criminal Code (Cth).

Mr Evans has also been charged with six counts of procuring the acquisition of a total of 1,500,000 Quantum shares while in possession of inside information and three counts of communicating inside information relating to Quantum to others.

ASIC alleges that, between 5 and 6 November 2015, Mr Evans procured the acquisition of 1,500,000 Quantum shares while possessing inside information, in breach of sections 1043A(1) and 1311(1) of the Corporations Act. The information related Quantum’s intention to take over an Israeli Information Technology company with a likely listing on the NASDAQ. ASIC also alleges that, between 4 and 6 November 2015, Mr Evans communicated this information to others, in contravention of 1043A(2) and 1311(1) of the Corporations Act.

Quantum is now known as Nova Minerals Limited.

At the time of the alleged offences, market manipulation, insider trading and passing inside information each carried a maximum penalty of ten years’ imprisonment. In March 2019, the maximum penalty for each of these offences increased to 15 years imprisonment.

The matters are being prosecuted by the Commonwealth Director of Public Prosecutions. Both have been adjourned until 18 December 2020 for mention in the Perth Magistrates Court.

Editor's note:

An earlier version of this media release stated that Mr Kimelman was a director of Quantum at 16 November 2015. He was in fact appointed as Chief Executive Officer of Quantum on 3 December 2015 and as a director of Quantum on 30 April 2016.

Editor's note 2:

On 18 December 2020, both matters were adjourned to the Stirling Gardens Magistrates Court for mention on 3 February 2021 at 9:30am.

Editor's note 3:

On 03 February 2021, the matters were adjourned to 10 February 2021 for further mention before the Stirling Gardens Magistrates Court.

Editor's note 4:

On 10 February 2021, both matters were adjourned for mention to 5 May 2021 before the Stirling Gardens Magistrates Court at 9:15am.

Editor's note 5:

On 5 May 2021, both matters were adjourned to 11 August 2021 for committal mention before the Stirling Gardens Magistrates Court, together with co-accused Mr Cooper on the market manipulation charges (refer: 21-050MR).

Editor's note 6:

The committal mention hearings for both Mr Evans and Mr Cooper have been adjourned to 13 October 2021 at Stirling Gardens Magistrates Court in WA.  Mr Kimelman has pleaded guilty to conspiring to manipulate the market in Quantum shares.  The plea will be heard in the County Court of Victoria (21-157MR) and the Western Australian charges have been discontinued.

Editor's note 7:

On 07 October 2021, Mr Kimelman’s plea hearing scheduled for 23 February 2022 was rescheduled to 22 October 2021 at 10:30am.

Editor's note 8:

The committal mention hearing for Mr Evans scheduled for 13 October 2021 has been adjourned to 8 December 2021.

Editor's note 9:

The sentencing hearing for Mr Kimelman has been adjourned to 8 November 2021.

Editor's note 10:

The committal mention for Mr Evans held on 8 December 2021 has been adjourned to 2 February 2022.

Last updated: 08/12/2021 04:50