Four individuals are facing potential imprisonment after being charged with orchestrating a 'pump and dump' scheme via the encrypted messaging app Telegram.
The defendants — Syed Yusuf, Larissa Quinlan, Emma Summer and Kurt Stuart — appeared in Sydney’s Downing Centre Local Court, accused of conspiring to manipulate markets and engage in false trading practices to artificially inflate stock prices listed on the ASX before swiftly selling off their holdings for profit.
If convicted, the accused could face a maximum penalty of 15 years in prison along with fines exceeding A$1 million for their alleged role in market manipulation.
The scheme reportedly involved the defendants selecting micro-caps within a private Telegram group, subsequently promoting these stocks in a public group dubbed the 'ASX Pump and Dump Group' to attract other investors.
ASIC underscored the severity of such schemes, labelling them as financial fraud that undermines market integrity and investor confidence.
ASIC chairman Joe Longo said, “market manipulation is illegal”, and emphasised the regulator’s proactive stance in safeguarding market cleanliness and prosecuting criminal activities that jeopardise economic stability.
The case, initially flagged by ASIC following a surge in pump and dump activity involving Aura Energy in 2021, has now been referred to the Commonwealth Director of Public Prosecutions for further legal action.
ASIC’s forthcoming initiatives include establishing a dedicated team to tackle insider trading and reinforcing Australia’s standing as having among the world’s most transparent equity markets.
The matter is set to continue with a detention application scheduled for July 30 at the Downing Centre Local Court.