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21-020MR Corporate finance director sentenced for conspiring to manipulate market
Corporate finance director, Mr Ananda Kathiravelu, of Perth WA, has been convicted in the Supreme Court of Western Australia for conspiring to manipulate the market. Mr Kathiravelu has been sentenced to 12 months imprisonment, released forthwith on recognizance in the sum of $10,000 to be of good behaviour for seven months.
Mr Kathiravelu was convicted of conspiring with another to take part in, or carry out, whether directly or indirectly, transactions that had, or were likely to have, the effect of creating or maintaining an artificial price for Radar Iron Limited (Radar) shares traded on the Australian Securities Exchange (ASX) between 12 May 2016 and 17 May 2016.
The transactions occurred one day prior to the suspension of Radar shares from the Official Quotation of the ASX, during which a capital raising by Radar took place. Mr Kathiravelu was a director of Radar and of the corporate finance firm, Armada Capital Pty Ltd, which was the lead manager of the capital raising. Armada Capital Pty Ltd stood to gain a 5% fee of the funds raised in the capital raising if it successfully raised over $5 million.
The Court found Mr Kathiravelu’s offending was serious and that he had attempted to increase the attractiveness of the capital raising by artificially increasing the price of Radar shares immediately prior to the suspension.
ASIC Commissioner Cathie Armour said ‘Market manipulation erodes public confidence in the fair, orderly and transparent operation of the market’.
‘ASIC will take action against misconduct which undermines the fairness and integrity of our financial markets’.
As a result of his conviction, Mr Kathiravelu is automatically disqualified from managing corporations until 8 February 2026.
On 18 September 2019, Mr Kathiravelu was committed to stand trial in the Western Australian Supreme Court on a charge of conspiracy to commit an offence of market manipulation [19-255MR].
On 27 August 2020, Mr Kathiravelu pleaded guilty to the charge [20-199MR].