Remember Joseph Gutnick that sued Dow Jones?
Levi Mochkin
Resources. Melbourne. 36. Married, six children.
Stockbroker Levi Mochkin, like most investors in Joseph Gutnick's resources companies, has been hard hit by the sinking price of gold. Mochkin, a Bell Securities broker and a rabbi, is a close associate of Gutnick (see separate listing) and remains a big shareholder in Gutnick's companies, but for now, BRW's youngest member of the Rich 200 is off the list.
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Background
In this hearing before the Victorian Supreme Court, Mr Joseph Gutnick, is
suing Dow Jones & Co Inc., over an article published in its weekly American
business magazine Barron's and on an Internet site hosted by the Wall Street
Journal. The article, entitled “Unholy Gains,” claims that embattled
Melbourne mining entrepreneur, religious figure and philanthropist, Mr
Gutnick had been involved in questionable financial dealings including money
laundering, share manipulation and fraud. In the article, which purports to
be a warning to US investors that Mr Gutnick has a questionable record in
financial matters, it is claimed, among other things, that he had used
religious charities to promote stocks. Mr Gutnick denies the allegations and
alleges that the article is defamatory and is suing specifically over the
Internet version of the article that he says was published in Victoria.
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Monday 3 December 2001
The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking from Melbourne-based securities representative, Mr Levi Mochkin, not to act as a representative of a securities adviser or an investment adviser.
Without admitting the concerns of ASIC, Mr Mochkin and ASIC have agreed to his withdrawal from the industry following an ASIC investigation into trading in the shares of Australian Gold Resources Ltd, Johnson's Well Mining Ltd and Quantum Resources Ltd.
ASIC was concerned that, during the period 1 August 1997 to 30 October 1998, Mr Mochkin was trading in the shares of the three companies and may have contravened the provisions of the Corporations Act relating to stock market manipulation (section 997) and false trading and market rigging transactions (section 998), or that he may not have acted in a manner that was honest, efficient and fair.
Section 997 and 998 of the Corporations Act prohibit trading on the stock market that may give a false and misleading appearance in relation to the market for, or the price of, a stock.
In particular, ASIC was concerned that Mr Mochkin:
Dominated the market for the shares;
Exercised a wide discretion in relation to timing and price of orders when executing orders to buy and sell the shares for various clients;
Failed to buy available shares when he had outstanding orders;
Caused trades to be executed at prices higher than the last sale price;
Placed bids within 20 minutes before the close of the market;
Executed trades for clients when there were prior outstanding orders for other clients;
Placed bids for clients without written orders or in excess of existing orders;
Had outstanding buy/sell orders at the same time for the same client and failed to execute those orders;
Failed to complete buy orders for clients;
Bought shares at prices in excess of client's instructions.
'ASIC will continue to ensure that the integrity of the market is protected and that investors can be confident that the price and volume on the market reflects genuine market forces', Mr Jamie Orchard, ASIC's Director of Enforcement, said.
For further information contact:
Jamie Orchard
Director Enforcement
Telephone: 03 9280 3470
Mobile: 0411 549 037 Kate Harvey
ASIC Media Manager
Telephone: 03 9280 3553
Mobile: 0401 985 966 |
