R v Heath [2015] NSWDC 282

R v Heath [2015] NSWDC 282

Full-time imprisonment was required because the offender deliberately and premeditatedly carried out market manipulation and matched trade offending over about 20 months for the dominant purpose of increasing or maintaining the prices of the relevant securities, particularly PSA, to avoid or reduce Margin Calls, increase Free Equity and protect the value of his holdings. The conduct distorted the market and undermined confidence in the market for securities. Although the offender was entitled to substantial credit for early guilty pleas, full co-operation with ASIC, contrition, no prior criminal history and otherwise good character, the seriousness of the offences and the need for general...

Jurisdiction
Australia
Judgment Date
25 September 2015
Procedural Posture
Criminal Sentence for Offences Contrary to the Corporations Act 2001 (cth) / Sentence After Guilty Pleas Entered in the Local Court
Outcome
The offender was sentenced to imprisonment on both counts, with partial accumulation, and ordered to be released after serving nine months on a recognisance release order.
Legal Topics
['market Manipulation' 'matched Trades' 'cfd Trading' 'false or Misleading Appearance in Financial Product Trading' 'artificial Price for Trading in Shares' 'general Deterrence' 'recognisance Release Order']
['criminal Law' 'corporations Law' 'sentencing' 'financial Markets Regulation'] ['market Manipulation' 'matched Trades' 'cfd Trading' 'false or Misleading Appearance in Financial Product Trading' 'artificial Price for Trading in Shares' 'general Deterrence' 'recognisance Release Order']

Case Brief

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Procedural Posture

Criminal Sentence for Offences Contrary to the Corporations Act 2001 (cth) / Sentence After Guilty Pleas Entered in the Local Court

Legal Issues

  1. 1 ['What sentence should be imposed for the market manipulation offence contrary to s 1041A(c) and s 1311(1) of the Corporations Act 2001 (Cth).' 'What sentence should be imposed for the matched trades offence contrary to s 1041B(1)(b) and s 1311(1) of the Corporations Act 2001 (Cth).' 'Whether the offending required full-time imprisonment or could be served by an alternative means.' "How the offender's guilty pleas, co-operation with ASIC, contrition, lack of prior criminal history, family circumstances and asserted lack of awareness affected sentence." 'Whether there should be accumulation between the sentences and how the principle of totality should apply.']

Ratio Decidendi

Full-time imprisonment was required because the offender deliberately and premeditatedly carried out market manipulation and matched trade offending over about 20 months for the dominant purpose of increasing or maintaining the prices of the relevant securities, particularly PSA, to avoid or reduce Margin Calls, increase Free Equity and protect the value of his holdings. The conduct distorted the market and undermined confidence in the market for securities. Although the offender was entitled to substantial credit for early guilty pleas, full co-operation with ASIC, contrition, no prior criminal history and otherwise good character, the seriousness of the offences and the need for general...

Court Disposition

The offender was sentenced to imprisonment on both counts, with partial accumulation, and ordered to be released after serving nine months on a recognisance release order.

Orders

  • ['Count 2, the Matched Trades Offence: sentenced to a term of imprisonment of 18 months commencing 25 September 2015 and expiring on 24 March 2017.' 'Count 1, the Market Manipulation Offence: sentenced to a term of imprisonment of two years commencing on 25 December 2015 and expiring on 24 December 2017.' 'After...