Already a subscriber?The Federal Court has found stockbroker Adam Blumenthal’s market-rigging breaches of shares in cannabis start-up Creso Pharma were serious, deliberate and repeated.
The court also ordered a carve-out, with limitations, for Mr Blumenthal’s role in entities that act as trustees for family trusts that have investments.The judgment is the latest mark in a long-running probe into Mr Blumenthal and other stock promoters, including his former associate Tyson Scholz, known as ASX Wolf.
The court, again on a civil basis, found Mr Blumenthal had engaged in market rigging on 14 occasions in relation to placing orders for clients to purchase shares in Creso.“They each had their source in Mr Blumenthal’s large shareholding in Creso, his position as the chairman of a financial services licensee with a capacity to employ trading strategies, and his intention of presenting a false or misleading picture to the market for Creso shares,” he said.
This move was “intending to represent to the market that there were more individual bidders for Creso shares than in fact existed”, the undertaking stated.