The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko has initiated High Court civil proceedings against Franco Belgiorno-Nettis, a seasoned retail investor from Auckland, over alleged market manipulation involving NZX-listed shares of Steel and Tube Holdings Limited (STU).
The case focuses on orders for STU’s shares placed by Belgiorno-Nettis between November 2020 and July 2023 through two broking accounts he maintained with ASB Securities.
The FMA claims that Belgiorno-Nettis’ orders consistently influenced the closing prices of STU shares and were thus likely to produce a false or misleading impression of trading activity.
It further alleges that the orders had no legitimate commercial purpose and that Belgiorno-Nettis intentionally acted to raise or sustain the price of STU shares for his personal gain while holding a significant stake in the company.
The FMA’s claim includes 66 causes of action, each alleging breaches of the trade-based market manipulation prohibitions under the Financial Markets Conduct Act 2013 (FMC Act).
The FMA is pursuing a declaration of contravention, civil financial penalties, and legal costs.
The FMA stated the court proceedings came after an investigation was launched when ASB raised potential concerns about the orders with the share market regulator NZ RegCo.
“We take cases of market manipulation seriously to ensure New Zealand’s markets reflect genuine supply and demand in order to preserve their integrity and reputation,” FMA Head of Enforcement Margot Gatland said.
“Public markets are an important aspect of the capital markets ecosystem in terms of both access to capital and opportunities for investment and wealth creation.”
“Investors should be careful to understand their obligations when trading online.”