Four-month term for market manipulator

A stock broker convicted of manipulation of the shares of Bill Express yesterday received a term of 20 months imprisonment from a judge of the Supreme Court of Victoria.

Newton Chan, 46, of Balwyn, Victoria will serve only four months before being released on a recognisance release order. The judged waived the additional term taking into account Chan's early guilty plea, assistance with the prosecution of related matters and also the ill health of his spouse.

The Australian Securities and Investments Commission last year banned Chan, a former broker with Macquarie Equities, from providing financial services for a period of five years.

Chan pleaded guilty to charges relating to the market manipulation of payments company Bill Express between early 2006 and early 2008.

The court was told that Chan used a number of trading accounts to purchase more than 34 million Bill Express shares, with a value of $6.1 million, in 904 transactions.

The buying and selling of Bill Express shares was designed to inflate the share price and assist Bill Express directors to avoid margin calls.