Victorian man charged with alleged market manipulation by ASIC
Behzad Eghrari, a resident of Vermont South, Victoria, has been formally charged with three counts of creating a false or misleading appearance of active trading after an extensive investigation conducted by ASIC. Eghrari, represented by his legal counsel, made an appearance in the Melbourne Magistrates’ Court where he was charged under sections 1041B(1)(a) and 1311 of the Corporations Act.
According to ASIC, the charges stem from a period spanning from August 3, 2022, to January 23, 2024, during which Eghrari executed a total of 679 trades across various share trading accounts under his control. These transactions involved no actual change in beneficial ownership and were associated with financial products linked to Investigator Resources Limited, Silver Mines Ltd, and Lumos Diagnostics Holdings Ltd.
The trading activity in question falls under the category known as ‘wash trading,’ a deceptive practice that entails placing simultaneous buy and sell orders for the same financial product without any alteration in beneficial ownership. This type of speculative activity is designed to fabricate a false sense of market activity, leading to misleading appearances within the financial markets.
The case has been scheduled for a committal mention at the Melbourne Magistrates’ Court on June 6, 2025, where further legal proceedings are expected to unfold. The prosecution of this matter has been entrusted to the Office of the Director of Public Prosecutions (Cth) (CDPP) following a thorough investigation and subsequent referral by ASIC.
Under the provisions of the law, the alleged offences carry a maximum penalty of up to 15 years of imprisonment, emphasizing the seriousness with which such violations of market integrity and investor trust are regarded within regulatory frameworks. This legal action underscores the commitment of regulatory authorities to uphold the integrity and transparency of financial markets by curbing illicit activities that undermine the fairness and legitimacy of trading practices.
