The founder of listed bottled water producer Eneco Refresh, Henry Eng Chye Heng, was sentenced to 18 months' imprisonment for market manipulation and creating a false or misleading appearance of active trading following a hearing in the Perth District Court on the 19 April 2024.

The court ordered Mr Heng be released forthwith on recognisance upon the condition that he be of good behaviour for a period of 12 months.

Mr Heng was sentenced for using share trading accounts held in the names of his family to manipulate the share price of Eneco on 24 occasions between 18 December 2020 and 15 December 2021.

Mr Heng also used share trading accounts held in the names of his family to conduct trades that created a false or misleading appearance of active trading in Eneco on 30 April 2021 and 30 November 2021.

ASIC Chair Joe Longo said, ‘ASIC welcomes the sentencing decision handed down. The recent insider trading convictions and jail time for Cameron Waugh, as well as the sentencing of Mr Heng, reflect ASIC’s commitment to protecting the integrity of Australia's markets by holding market operators and participants to the highest standards.’

Mr Heng, who was the managing director and executive chairman of the Perth-based company, pleaded guilty to the charges at a hearing on 1 December 2023 in the Perth Magistrates Court.

This matter was prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.

Background

Market manipulation is contrary to section 1041A of the Corporations Act.
Creating a false or misleading appearance of active trading is contrary to section 1041B(1) of the Corporations Act.

The maximum penalty for each contravention of market manipulation and creating a false or misleading appearance of active trading is 15 years imprisonment.