ASIC media releases are point-in-time statements. Please note the date of issue and use the internal search function on the site to check for other media releases on the same or related matters.

Thursday 1 July 2021

21-157MR Former Quantum director Avrohom Kimelman pleads guilty to market manipulation and insider trading

Former Quantum Resources Ltd (Quantum) CEO and director Avrohom Mordechai Kimelman, of St Kilda East, Victoria, pleaded guilty on 30 June 2021 before the County Court of Victoria to one charge of conspiracy to manipulate the market in Quantum shares and one rolled up charge of procuring the acquisition of shares in Quantum while in possession of inside information.

ASIC alleged that, on 16 November 2015, Mr Kimelman conspired with others to manipulate Quantum shares (20-223MR and 21-050MR).

ASIC also alleged that Mr Kimelman procured the acquisition of 1,990,963 Quantum shares between 27 April 2016 and 5 May 2016, while in possession of inside information concerning Quantum’s intention to acquire Manitoba Minerals Pty Ltd, which had agreed to acquire an interest in a lithium resource in Canada (20 -145MR).

On 3 December 2015, Mr Kimelman was appointed CEO of Quantum. On 30 April 2016, he also became a director of the company.

At the time of the offences, the charge of conspiracy to market manipulation contrary to section 11.5(1) of the Criminal Code (Cth) and sections 1041A and 1311(1) of the Corporations Act 2001 (the Act), and of insider trading contrary to sections 1043A(1)(d) and 1311(1) of the Act each carried a maximum penalty of 10 years imprisonment.

In March 2019, the maximum penalty for both offences was increased to 15 years imprisonment.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions. It has been listed for a plea hearing in the Melbourne County Court on 23 February 2022.

Editor's note:

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

Last updated: 11/10/2021 05:10