The Auckland high court has found Milford Asset Management portfolio manager, Mark Warminger, has breached market manipulation charges on two of the 10 counts brought by the Financial Markets Authority last year.
According to the ruling released this afternoon, Warminger had carried out manipulation in relation to trades in Fisher & Paykel and A2 Milk in 2014.
In the ruling published here, Justice Venning said: “The FMA has satisfied the Court on the balance of probabilities that Mr Warminger manipulated the market in breach of s 11B of the Securities Market Act 1988 in relation to FPH (COA 1) and in relation to ATM on 9 July (COA 3).”
“The FMA however has failed to satisfy the onus on it to prove in relation to the other causes of action that Mr Warminger manipulated the markets as alleged. While the trading raises a number of issues, in relation to some causes of action in particular, on the evidence before the Court and given Mr Warminger’s explanation for those transactions, the Court cannot be satisfied that the trades amounted to market manipulation,” the ruling says. “The FMA’s claim in relation to each of those causes of action is dismissed.”
Decisions regarding “pecuniary penalty, the quantum of such penalty, and costs” would be filed in 20 working days.