Friday 17 April 2015

SmallCap Danmark indicted for stock market manipulation

SmallCap Danmark AS said it has received a formal indictment against the company and the then CEO Jens Erik Høst for egregious violations of the Danish Securities Trading Act pertaining to trades in Egetæpper (CPH: EGE) and Rias (CPH RIAS B) between 2009-2011. The trades made by Mr. Høst for the company and transactions between the company and an entity controlled by him are said to not have represented actual demand but were instead used to run up the price to raise the value of their previous holdings to show a better result for the company. The investment company denies stock market manipulation and says its holdings are not affected by the indictment. The charge carries a possible fine.

The Danish State Prosecutor for Serious Economic and International Crime (SØIK) brought charges against the company in 2012. At that time more issues and another stock were on the table. The Danish authority has recently stepped its efforts for violations that took place following the financial crisis. Having been following the said stocks at that time and since, they certainly did enter a whole new plateau with very little volume. Since then the price rise has however also proven justified by the numbers.

No comments:

Post a Comment