Credit: iStock
Two men face 10 years' in prison for alleged illegal share market manipulation.
Former director of Quantum Resources Ltd (now known as Nova Minerals Ltd (ASX: NVA)) Avrohom Mordechai Kimelman and Don George Evans of Inglewood, WA, appeared in Perth Magistrates' Court on Friday facing multiple charges.
The Australian Securities and Investments Commission (ASIC) accused Kimelman and Evans of conspiring to manipulate NVA's share price in November 2015.
Evans, who did not work for the company, acquired 1.5 million NVA shares on 5 and 6 November 2015. The corporate watchdog alleges he held inside information at the time.
The non-public tip related to NVA's plans for a reverse-merger with a technology company from Israel. The combined company would have "likely" listed on the NASDAQ.
ASIC also alleges Evans told this information to other people between 4 and 6 November.
Records show NVA shares went from 3 cents at the end of October to 8 cents by 13 November 2015.
As well as the market manipulation charge, Evans faces 6 counts related to the acquisition of the shares and 3 counts involving telling others about the merger.
At the time of the alleged violations, a 10-year jail term was the maximum penalty for each of market manipulation, insider trading and forwarding inside information.
The maximum punishment was boosted in March 2019 to 15 years in prison.
The cases for both men were adjourned until 18 December.
