ASC finds oil rig worker a stock manipulator
2013-03-19 13:48 ET - Street Wire
Also Street Wire (C-MNM) Magellan Minerals Ltd
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by Mike Caswell
The Alberta Securities Commission has found David De Gouveia, a Calgary oil rig worker and active Stockhouse poster, guilty of market manipulation. The ASC says that Mr. De Gouveia carried out dozens of trades in Vancouver's Magellan Minerals Ltd., with the purpose being to create an artificially high price for the company. Among other things, he executed high-closing trades on the last day of several consecutive months.
The findings come four months after the ASC held a five-day hearing against Mr. De Gouveia. The regulator contended that he traded Magellan "very energetically" in late 2008 and early 2009, during his one-week breaks from oil rig work. He executed large numbers of small trades, with most of the trades resulting in upticks and many in high closes.
During the hearing Mr. De Gouveia attempted to portray himself as an amateur trader and "naive bumbler," but a three-member ASC panel found that he was "simply too good at what he did for that to make sense." The evidence showed that of his trades, 72 per cent were upticks and many were executed at the high price for the day. Moreover, his trading made no economic sense, and he in fact lost money.
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Coffintrader unmasked! Now there's a guy who knows how to tout a stock!
Posted by Phatter Dean at 2013-03-19 14:14
I guess low closing nearly every stock on the venture exchage for nearly 2 years via trades through 99 and Annon is ok. These dimwit SEC regulators turn a toal blind eye to whoever has been downticking the venture market stocks in the last second of trading. There are hundreds of stocks that have been downticked every day for months on end, and they havent made any attempt to address this issue.
Danny Deadlock addressed the market manipulation and its impact a few weeks ago and the wealth destruction it has caused.
When will they unmask these 2 hedgefunds, I shares or whoever is behind that much larger and wealth destructive trading.
Posted by Dave at 2013-03-19 14:54
Geniuses at BCSC strike again.
"When he lost money he was manipulating the market, when he made money he was manipulating the market".
It's The Spanish Inquisition and Kangaroo Court all rolled into one.
Get real guys. Market making is designed to help companies elevate their stature and attract liquidity.
On the floor of real stock exchanges they're called "specialists" and it's a requirement to employ them as a condition of a listing.
In BCSCLand they're criminals.
As a previous poster remarked, if he'd smashed the bids out seconds before the close every trading day of the year they'd be giving him a job at The Commission and he'd be on the tribunal by now earning three times his salary as he does as a trader and oil worker. Only he'd be "rigging" for the BCSC.
Posted by Birdcat at 2013-03-19 22:25
My bad. ASC. Same thing. Same agendas.
Posted by Birdcat at 2013-03-19 22:28
It's true. The BCSC, OSC, ASC seem incapable or unwilling to address the much more serious problem of the major market manipulators. The MASSIVE hedge fund manipulation that has affected hundreds of junior stocks in recent weeks seems to have gone unnoticed. I guess they only go after the easy pickings. Guess they have to try show they are doing SOMETHING to justify their existence. It really is pathetic though.
Posted by black top runner at 2013-03-20 09:56
Below is the actual wording of the 'ruling' of the ASC. I've just conveniently removed 'coffintraders' name and inserted 'The Banks'
****************************************
An ASC panel found that ''The Banks'' engaged in a pattern of trading that involved: upticks (trading at a higher price than the immediately preceding trade), high closes (closing trades on an uptick), wash trades (acting as both seller and purchaser in the same transaction) and uneconomic trades (selling and then immediately buying shares at a higher price).
Their trading exhibited multiple examples of what have been recognized as hallmarks of market manipulation, and that this was the behaviour of an alert, observant and active trader willingly sending price signals not prompted by a bona fide investment motivation.
**************************************
What a bloody travesty--take out the nefarious penny ante 'coffintrader' --marketmanipulator extraordinaire---and to think that the paragon of virtue CIBC flagged him!!! The 'banks' are the true experts at this game--with one big finger on the #1 button--I guess 'coffin' was stealing their fire and getting in their way !!
Well done ASC--kudos all round. Take yourselves out for dinner and drinks--bonuses for all. Who'd a' thunk that you could singlehandedly make yourselves appear even more trivial and irrelevant than we've already given you credit for!!
Posted by T'was ever Thus at 2013-03-20 10:20
another GREAT reason to have ONE authoritative body, ie, the OSC. I read the story about the morons in Nova Scotia charging those guys for buying 7500 dollars worth of stock while trying to support the market of their stock. TO THE BENEFIT OF EVERY F'ING SHAREHOLDER. Now this? In the Netherlands they would have charged that young boy for "fingering" the dike. I don't recall ONE other example of the long arm of the ASC being recorded anywhere in the last 5 years. I wonder how much the tax-payers are paying these a-holes when THIS is the most they can come up with. In how many years? Somehow they completely missed those dudes from Calgary that the SEC just charged. They were running a boiler room and got away with MILLIONS. Rinky dink at best. Ridiculous and embarrassing at worst.
Posted by optimist at 2013-03-20 10:35
Kind of makes one laugh...prowling the bull boards to nab a part time tout and bid slammer while there are shops in Alberta boiling the pants off of naive investors. I would think it is time to dismantle the local gremlins (ASC and BCSC) and if we must have grimy regulators wearing smelly plastic suits and clip on ties...at least have them come out of Toronto.
Posted by Da Crusader at 2013-03-20 11:28
Remember, these 'investigators' (lol) are just a collection of police academy failures or once upon a time dreamt of a career as a security guard and now they wear a badge from the government. Pretty much incapable of solving any real crimes so they're just reduced to handing out jaywalking citations.
Posted by Birdman at 2013-03-22 21:58
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