Erscheinung:06.05.2013 | Topic Market manipulation Prison sentence of five years and three months for market manipulation and insider trading
In a trial concerning market manipulation and insider trading based on charges brought by BaFin, on 29 April 2013 the Regional Court (Landgericht) in Munich handed down a prison sentence of five years and three months to a 45 year old businessman. The Court also ordered the defendant to pay a fine of €3.5 million as restitution for injured parties. The Public Prosecutors’ Office in Munich (Staatsanwaltschaft München I) continues its investigations into a number of other suspects that is believed to run into double figures.
Together with others, the convicted businessman committed fraud concerning a capital increase. He provided falsified bank confirmations to the responsible registration court thereby bringing about an incorrect registration concerning a capital increase. Subsequently, knowing that there had been no capital increase, the defendant carried out share transactions. By issuing contrary buy and sell orders, he generated a share price that did not correspond with the actual supply and demand of the shares. The defendant was also involved with others in using false information to attract investors to a company. He used the demand generated by this action to sell his shares via his wife’s securities account and an investment firm.
The judgment is not yet final.
