Former Macquarie Equities Limited client advisor, Mr Newton Chan was today sentenced in the Supreme Court of Victoria to a term of 20 months imprisonment following an investigation by ASIC into the manipulation of the share price of Bill Express Limited (BXP) (now in liquidation).

Mr Chan, 46, of Balwyn, Victoria was ordered to serve four months immediately, before being released on a recognisance release order.

The sentence follows Mr Chan's guilty plea to eight counts of market manipulation contrary to section 1041A of the Corporations Act and one count of providing false or misleading information to ASIC contrary to section 64 of the Australian Securities and Investments Commission Act.

Between 3 May 2006 and 26 March 2008 Mr Chan , while he was a senior client adviser at Macquarie Equities Ltd, used a number of trading accounts to purchase more than 34 million BXP shares, worth over $6.1 million, via 904 separate transactions. It was accepted that these transactions created or were likely to create an artificial price for BXP.

On the charge of providing false and misleading information to ASIC, Mr Chan was sentenced to five months imprisonment. This term was incorporated in the total sentence of 20 months imprisonment.

His Honour Justice T Forrest noted that Mr Chan had offered to plead guilty at the earliest possible opportunity and had provided assistance to ASIC in relation to its prosecution of other individuals. Justice Forrest said that had it not been for Mr Chan's guilty plea and assistance he would have received a total effective sentence of three years imprisonment. Justice Forrest also considered that the effect of Mr Chan's wife's ill health amounted to exceptional circumstances and were it not for this, Mr Chan would have been ordered to serve a significantly longer period of imprisonment.

In sentencing Mr Chan, specific reference was made to the importance of maintaining fair, orderly and transparent markets and Justice Forrest commented:

    • I consider that it is only by the imposition of such a sentence [a term of imprisonment to be served immediately] that others considering manipulating the market in some way will pause to think about the potential consequences of their actions.

The matter was prosecuted by the Commonwealth Director of