8/12/2019 ASIC Complaint 2
1/87
;
MX@HMA ]BKVHBAD@HV VH]HKVMB
MBK^PHV 27
K]OM MAE^DKOJP] MAJMHVJOJL Mu@HMA PVK@OJL
2.6K Vhvohw ai Prk`ojl Kssamokth` wotb tbh Kmmueudktoaj ai]bkrhs fy tbh E&L Lraup
(Amtafhr, Javhefhr kj` @hmhefhr 6>;>)
@O]MDKOEHV7 Kdd Ojiarektoaj prhshjth` ks sbkrhbad`hr rhshkrmb bks fhhj saurmh` irae
frachr trk`ojl rhmar`s kj` Mu`hma rhlostry rhmar`s. \bodh tbh kutbar majso`hrs tbh ktk
ta fh kmmurkth kj` tbh sueekrohs prhshjth` ks kdsa fhojl kj kmmurkth rhidhmtoaj ai
trk`ojl, ja lukrkjthhs krh lovhj ks ta tbh rhdokfodoty ai `ktk ar kjy majmdusoajs put
iarwkr`. ]bkrhbad`hrs kj` ojvhstars krh hjmaurklh` ta `a tbhor awj @uh @odolhjmh kj` ta
ekch up tbhor awj eoj`s oj rhlkr` ta kjy trhj`s prhshjt oj tbh trk`ojl `ktk.
8/12/2019 ASIC Complaint 2
2/87
6
VHIHVHJMH DOJC] PA ^XFDO]BH@ VH]HKVMB
Mbkpthr ;7 Ojtra`umtoaj
;.; \by Fdal1
;.6 Pbh Murrhjt ]otuktoaj
;.= Fdal Majthjt
Mbkpthr 67 Kj Avhrvohw ai Prhj`s Kssamokth` \otb ;8 Eajtbs ai Prk`ojl
6.; Ojtra`umtoaj
6.6 Prk`ojl Prhj`s Avhr k ;8 Eajtb hroa`
Mbkpthr =7 Prk`ojl Prhj`s Dhk`ojl up ta Kul ;2, 6>;>
=.; Prk`ojl Dhk`ojl Xp ta tbh Kul ;2 Vhsaurmh Xplrk`h
=.6 Kj Kjkdysos ai romh Xj`hr-^hriarekjmh @urojl Gkj-Ihf 6>;>
=.= Ekrcht Ekjopudktoaj Ossuhs, >9 GAVM Ossuhs
=.8 Ekrcht Vhkmtoajs ta ]oljoiomkjt Kjjaujmhehjts 6>;>
=.9 Pbh 6>;> Vhsaurmh Hstoekth kj` Ossuhs Vhdkth` ta GAVM Ma`h Maepdokjmh
Mbkpthr 07 Prk`ojl tbkt Ammurrh` Iaddawojl tbh Kul ;2, 6>;> Vhsaurmh Xplrk`h
0.; Bostarom Prhj`s kj` Kul ;2, 6>;> Prk`ojl @ktk
Mbkpthr 87 Prk`ojl Xp`kths
8.; ]bart ^asotoaj Xp`kth - Jav ;, 6>;;
8.6 Vhlostry Xp`kth ks kt Jav =, 6>;;
8.= Ekrcht Xp`kth Jav ;0
8.0 ]ueekry ai Ossuhs ^dus Prk`ojl Kjaekdohs @urojl Javhefhr 6>;; kj` oj k Frak`hr Majthxt
Mbkpthr 97 Vhlostry Kjaekdohs
9.; Kj Avhrvohw ai Eajtbdy Vhlostry Kjaekdohs ]pkjjojl 6 _hkrs ai Prk`ojl9.6 Ojmrhksh` Vhlostry Kmtovoty Yhrsus K]R Fuyojl kj` ]hddojl
9.= Prk`ojl Ihkturojl ]ufstkjtokddy Ojmrhksh` Vhlostry Kmtovoty Avhr K]R Kmtovoty - ^krt 6
9.0 Prk`ojl Ihkturojl ]ufstkjtokddy Ojmrhksh` K]R Kmtovoty Avhr Vhlostry Kmtovoty.
9.8 Pbh Oepkmt ai Ojstotutoajs aj tbh Mu@hma Vhlosthr
Mbkpthr Maepkjy VhshkrmbFoddkfajl Frachr @ktk (FFL)
> Maepkjy VhshkrmbDyjks Frachr @ktk (D_M)
Mbkpthr 27 Aiiomokd Maepdkojts ta K]OM Majmhrjojl Prk`ojl oj Mu@hma2.; K]OM Maepdkojt 6>;=-;
2.6 K]OM Maepdkojt 6>;=-6
http://www.scribd.com/cudeco_research/d/67409267-1-1-Why-Bloghttp://www.scribd.com/cudeco_research/d/67423568-1-2-The-Current-Situationhttp://www.scribd.com/cudeco_research/d/67429812-1-3-Blog-Contenthttp://www.scribd.com/cudeco_research/d/67429812-1-3-Blog-Contenthttp://www.scribd.com/cudeco_research/d/67547810-2-1-Introductionhttp://www.scribd.com/cudeco_research/d/67547832-2-2-Trading-Trends-Over-a-15-Month-Periodhttp://www.scribd.com/cudeco_research/d/68322996-3-1-Trading-Leading-Up-to-the-Aug-18-Resource-Upgradehttp://www.scribd.com/cudeco_research/d/69225627-3-2-An-Analysis-of-Price-Under-Performance-During-Jan-Feb-2010http://www.scribd.com/cudeco_research/d/70329764-3-3-Market-Manipulation-Issues-7-5-Months-of-Auction-Investigations-and-Down-Tick-Analysishttp://www.scribd.com/cudeco_research/d/71785918-3-4-A-Review-of-June-July-2006-JORC-Issueshttp://www.scribd.com/cudeco_research/d/72657401-3-5-Market-Reactions-to-Significant-Announcements-2010http://www.scribd.com/cudeco_research/d/72843228-3-6-The-2010-Resource-Estimate-and-Issues-Related-to-JORC-Code-Compliancehttp://www.scribd.com/cudeco_research/d/74880855-4-1-Historic-Trends-and-Aug-18-2010-Trading-Datahttp://www.scribd.com/doc/71993719/5-1-Short-Position-Update-Nov-1-2011?in_collection=3328929http://www.scribd.com/cudeco_research/d/72101339-5-2-Registry-Update-as-at-Nov-3-2011http://www.scribd.com/cudeco_research/d/72853140-5-3-Market-Update-Nov-14http://www.scribd.com/cudeco_research/d/80847439-5-4-Summary-of-Issues-Plus-Trading-Anomalies-During-November-2011-and-in-a-Broader-Contexthttp://www.scribd.com/cudeco_research/d/91787889-6-1-An-Overview-of-Monthly-Registry-Anomalies-Spanning-2-Years-of-Tradinghttp://www.scribd.com/doc/101205428/6-2-Increased-Registry-Activity-Versus-ASX-Buying-and-Sellinghttp://www.scribd.com/doc/104849741/6-3-Trading-Featuring-Substantially-Increased-Registry-Activity-Over-ASX-Activity-Part-2http://www.scribd.com/doc/107397935/6-4-Trading-Featuring-Substantially-Increased-ASX-Activity-Over-Registry-Activityhttp://www.scribd.com/doc/114380425/6-5-The-Impact-of-Institutions-on-the-Cudeco-Registerhttp://www.scribd.com/doc/129258881/7-1-Research-Findings-in-Relation-to-CDU-LYC-BBG-and-EGPhttp://www.scribd.com/doc/139929124/7-2-Further-Research-Into-ASX-200-Companies-Linc-Energy-LNChttp://www.scribd.com/doc/144097419/7-3-ASX200-Company-Research-Billabong-BBG-Broker-Datahttp://www.scribd.com/doc/144097419/7-3-ASX200-Company-Research-Billabong-BBG-Broker-Datahttp://www.scribd.com/doc/144097419/7-3-ASX200-Company-Research-Billabong-BBG-Broker-Datahttp://www.scribd.com/doc/154247924/7-4-ASX-200-Company-Research-Part-4-Broker-Data-for-Lynas-Corporation-LYChttp://www.scribd.com/doc/154247924/7-4-ASX-200-Company-Research-Part-4-Broker-Data-for-Lynas-Corporation-LYChttp://www.scribd.com/doc/154247924/7-4-ASX-200-Company-Research-Part-4-Broker-Data-for-Lynas-Corporation-LYChttp://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1?in_collection=4325685http://www.scribd.com/doc/168461175/8-2-ASIC-Complaint-2013-2http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/168461175/8-2-ASIC-Complaint-2013-2http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1?in_collection=4325685http://www.scribd.com/doc/154247924/7-4-ASX-200-Company-Research-Part-4-Broker-Data-for-Lynas-Corporation-LYChttp://www.scribd.com/doc/144097419/7-3-ASX200-Company-Research-Billabong-BBG-Broker-Datahttp://www.scribd.com/doc/139929124/7-2-Further-Research-Into-ASX-200-Companies-Linc-Energy-LNChttp://www.scribd.com/doc/129258881/7-1-Research-Findings-in-Relation-to-CDU-LYC-BBG-and-EGPhttp://www.scribd.com/doc/114380425/6-5-The-Impact-of-Institutions-on-the-Cudeco-Registerhttp://www.scribd.com/doc/107397935/6-4-Trading-Featuring-Substantially-Increased-ASX-Activity-Over-Registry-Activityhttp://www.scribd.com/doc/104849741/6-3-Trading-Featuring-Substantially-Increased-Registry-Activity-Over-ASX-Activity-Part-2http://www.scribd.com/doc/101205428/6-2-Increased-Registry-Activity-Versus-ASX-Buying-and-Sellinghttp://www.scribd.com/cudeco_research/d/91787889-6-1-An-Overview-of-Monthly-Registry-Anomalies-Spanning-2-Years-of-Tradinghttp://www.scribd.com/cudeco_research/d/80847439-5-4-Summary-of-Issues-Plus-Trading-Anomalies-During-November-2011-and-in-a-Broader-Contexthttp://www.scribd.com/cudeco_research/d/72853140-5-3-Market-Update-Nov-14http://www.scribd.com/cudeco_research/d/72101339-5-2-Registry-Update-as-at-Nov-3-2011http://www.scribd.com/doc/71993719/5-1-Short-Position-Update-Nov-1-2011?in_collection=3328929http://www.scribd.com/cudeco_research/d/74880855-4-1-Historic-Trends-and-Aug-18-2010-Trading-Datahttp://www.scribd.com/cudeco_research/d/72843228-3-6-The-2010-Resource-Estimate-and-Issues-Related-to-JORC-Code-Compliancehttp://www.scribd.com/cudeco_research/d/72657401-3-5-Market-Reactions-to-Significant-Announcements-2010http://www.scribd.com/cudeco_research/d/71785918-3-4-A-Review-of-June-July-2006-JORC-Issueshttp://www.scribd.com/cudeco_research/d/70329764-3-3-Market-Manipulation-Issues-7-5-Months-of-Auction-Investigations-and-Down-Tick-Analysishttp://www.scribd.com/cudeco_research/d/69225627-3-2-An-Analysis-of-Price-Under-Performance-During-Jan-Feb-2010http://www.scribd.com/cudeco_research/d/68322996-3-1-Trading-Leading-Up-to-the-Aug-18-Resource-Upgradehttp://www.scribd.com/cudeco_research/d/67547832-2-2-Trading-Trends-Over-a-15-Month-Periodhttp://www.scribd.com/cudeco_research/d/67547810-2-1-Introductionhttp://www.scribd.com/cudeco_research/d/67429812-1-3-Blog-Contenthttp://www.scribd.com/cudeco_research/d/67423568-1-2-The-Current-Situationhttp://www.scribd.com/cudeco_research/d/67409267-1-1-Why-Blog8/12/2019 ASIC Complaint 2
3/87
=
IAVH\AV@
Pbh murrhjt K]OM maepdkojt rhihrs ta tbh phroa` wbhj tbh E&L Lraup kmmueudkth` Mu@hma sbkrhs `urojl
dkth 6>;>. Ot frojls ta ktthjtoaj iurtbhr ekjopudktovh trk`ojl ossuhs aj tbh K]R tbkt bkvh fhhj skjmtoajh`
fy rhludktary kutbarotohs. Mhrtkojdy, tbh trk`ojl fhbkvoaurs o`hjtoioh` oj kdd rhshkrmb pufdosbh` ta `kth aj
tbh sbkrhbad`hr fdal,www.smrof`/mae/mu`hmaQrhshkrmb,krh `okehtromkddy appash` ta tbh luo`hdojhs
pravo`h` fy tbh K]R (o.h., fkmc wbhj ot wks k shdi-rhludkth` arlkjozktoaj), kj` tbh luo`hdojhs lovhj fy tbh
Bolb Maurt oj ots rhmhjt gu`lhehjt 4Vhihr ^l 2, K]OM Maepdkojt 6>;=-;:.Pbh ekjopudktovh fhbkvoaurs
o`hjtoioh` krh kdd fksh` aj kjaekdaus trhj`s `rkwj irae heporomkd `ktk tbkt mkjjat fh k`hqukthdy
hxpdkojh` oj thres atbhr tbkj sbkrh promh ekjopudktoaj.
K `ostojmtoaj jhh`s ta fh ek`h fhtwhhj sbkrh promh ekjopudktoaj, wbomb os oddhlkd, kj` kj ujikor ekrcht,
wbomb os k ikmt ai doih iar rhtkod ojvhstars. Ikorjhss ossuhs krh wo`hdy kmcjawdh`lh`. Pbhrh os ja quhstoaj
tbkt tbh K]R pravo`hs kj uj-dhvhd pdkyojl iohd` wotb sapbostomkth` ojvhstars lrkjth` provodhlhs tbkt
k`vkjtklh tbhe oj tbh ekrcht avhr kdd atbhr ojvhstars. Pbh provodhlhs ojmdu`h strhkedojh` kmmhss ta K]R
maeputhrs wbomb pravo`hs suphroar hxhmutoaj sphh`s iar trk`hs kj` kj kfodoty ta vohw kj` rhkmt ta kdd
ar`hrs ojstkjtdy ks tbhy krrovh aj tbh K]Rs hdhmtrajom trk`ojl pdktiare, tbhrhfy prh-heptojl oephj`ojl
trk`hs oj tbh quhuh kwkotojl hxhmutoaj.
Pbh provodhlhs kdsa kppdy ta tbh ush ai trk`ojl kdlarotbes tbkt krh kfdh ta ojstotuth dkrlh juefhrs ai sekdd
trk`hs, fut fy tbhor vhry `hsolj `hdovhr strkthlom k`vkjtklhs avhr kdd atbhr ojvhstars. Vhtkod ojvhstars, wba
bkvh ta `hkd wotb bolbhr trkjskmtoaj masts pkrtomudkrdy iar sekdd trk`hs ks whdd ks ekrch`dy ojihroar kmmhss
sphh`s rhlkr`ojl ar`hr hxhmutoaj, soepdy mkjjat maephth.
Bawhvhr wbkt dkrlh juefhrs ai sekdd provkth ojvhstars kj` eue-kj`-`k` rhtkod ojvhstars krh lhjhrkddyjat kwkrh ai, kj` wbkt sbkrhbad`hr rhshkrmb bks fraulbt ta ktthjtoaj, os tbh wo`hsprhk` ekjopudktovh
kmtovoty tkcojl pdkmh tbkt os fatb skjmtoajh` kj` lhjhrkddy oljarh` ar `oseossh` fy rhludktary kutbarotohs.
\bkt bks hehrlh` tbraulb rhshkrmb os tbkt tbh trk`ojl ossuhs rkosh` majmhrjojl Mu@hma kppdy hqukddy ta
atbhr stamcs ks whdd, kj` tbkt Mu@hma trk`ojl `ktk bks soepdy pravo`h` k woj`aw ojta systheom prafdhes
tbkt rhquorh urlhjt ktthjtoaj. Pbh mrumokd paojt os tbkt ekrchts krh jat ajdy ujikor, fut ekjopudktovh
kmtovoty os skjmtoajh` tbkt os `hstrayojl dkrlh keaujts ai whkdtb ai Kustrkdokj motozhjs kj` oj`hh` tbh
Kustrkdokj hmajaey. Pbh whkdtb `hstrumtoaj afvoausdy oepkmts sekdd rhtkod ojvhstars wba krh ujkfdh ta
maephth oj tbh ekrcht, fut ot bks kdsa `hmoekth` maepudsary suphrkjjuktoaj bad`ojls ai Kustrkdokj
warchrs oj tbh yhkrs iaddawojl tbh Ldafkd Iojkjmokd Mrosos.
Pbh iuj` ekjklhehjt oj`ustry os bhkvody kssamokth` wotb kdd ai tbh sbkrh ekrcht ekjopudktoaj ossuhs
autdojh` fy rhshkrmb. Pbh trk`ojl ossuhs fraulbt ta ktthjtoaj irae dkth 6>;> tbraulb ta 6>;= bolbdolbt tbh
ehmbkjoses wbhrhfy dkrlh keaujts ai suphrkjjuktoaj mkpotkd krh kfdh ta fh summhssiuddy `rkojh` irae tbh
systhe. Oj ikmt tbh hjtorh `ysiujmtoajkd K]R systhe kpphkrs ta bhkvody rhdy upaj k rhludktar tbkt lhjhrkddy
oljarhs maepdkojts kj` kmquohsmhs ta tbh `hekj`s ai vhsth` ojthrhsts wbodh kttheptojl ta jarekdozh
`ufoaus trk`ojl kmtovotohs. Pbh kmmhptkjmh fy K]OM ai `krc paads, BIP trk`ojl kj` bolbdy ekjopudktovh sbart
shddojl prkmtomhs, `hspoth tbh `hstrumtoaj ai whkdtb tbkt kmmaepkjy tbhe, os mdhkrdy ujkmmhptkfdh kj` hkmb
`ky tbkt pksshs wotb jatbojl `ajh kfaut sumb systheom prafdhes, os kjatbhr `ky wbhj dkrlh keaujts ai
whkdtb krh stropph` irae ujsusphmtojl ojvhstars.
http://www.scribd/com/cudeco_researchhttp://www.scribd/com/cudeco_researchhttp://www.scribd/com/cudeco_researchhttp://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd/com/cudeco_research8/12/2019 ASIC Complaint 2
4/87
0
Xjikorjhss os ajh tbojl, fut ojthreojkfdy marrupth` ekrchts tbkt Kustrkdokj motozhjs krh iarmh` ta hjlklh oj
tbraulb maepudsary suphrkjjuktoaj, os quoth kjatbhr. Oepartkjtdy, Lavhrjehjt rhludktars krh hstkfdosbh`
ta hjsurh ekrchts krh jat ujikor ar marrupt kj` ta prathmt ots motozhjs irae tbhsh prkmtomhs. Pbos os jat
bkpphjojl wotb rhlkr` ta tbh K]R.
Kdrhk`y tbh rhspajsh ta paar suphrkjjuktoaj rhturjs iaddawojl tbh LIM bks fhhj iar tbh prhvoaus Dkfar
Lavhrjehjt ta fh phrsuk`h` ta dhlosdkth iar ojmrhksh` majtrofutoajs. Xj`hr murrhjt krrkjlhehjts, otrhprhshjts sufstkjtokddy earh hksody hxpdaoth` mkpotkd iar tbh oj`ustry ta tbrovh aj, wotb `ufoaus fhjhiots
iar majtrofutars. Pbh iuj`s ekjklhehjt oj`ustry os kmtukddy pdkjjojl ta bkrvhst k mksb-hjlarlh` iuturh
wotb iuj`s uj`hr ekjklhehjt hxphmth` ta ojmrhksh irae krauj` $;.= troddoaj murrhjtdy, ta krauj` $9
troddoaj fy tbh yhkr 6>=>4MDOMC7 Vhihrhjmh Dojc:.
Oepartkjtdy tbh praiot lhjhrktoaj tbkt kmmaepkjohs tbh ekjklhehjt ai suphrkjjuktoaj bad`ojls sumb ks tbh
$;> kj` Gkjukry
6>;64MDOMC7 Vhihrhjmh Dojc:bks ta maeh irae saehwbhrh. Oj tbos ojstkjmh ot os dochdy ta fh kssamokth` wotb
tbh dhj`ojl ai mdohjts paadh` sbkrhs (usukddy suphr iuj`s, phjsoaj iuj`s, eutukd iuj`s htm.) wbhrh tbh vkduh
ai bad`ojls bks fhhj `hmoekth` oj suppart ai woj`ikdd lkojs iar tbash hjlklh` oj sbart shddojl dh` fy
ojstotutoajs kj` bh`lh iuj`s. Pbhj tbhrh krh tbh kmmaujt ihhs kj` maeeossoajs hkrjh` tbraulb tbh avhr-
trk`ojl ai kmmaujts uj`hr ekjklhehjt. Ot os ja surprosh tbkt suphrkjjuktoaj rhturjs bkvh fhhj shvhrhdy
oepkmth` orrhsphmtovh ai tbh `oiiomudt hmajaeom hjvorajehjt usbhrh` oj fy hvhjts surrauj`ojl tbh LIM. Pbh
kmtoajs ai k iuj` ekjklhehjt oj`ustry oj ekcojl atbhr phapdhs sbkrhs kvkodkfdh ta provodhlh` ojso`hrs ta
praiot irae `oiiomudt trk`ojl maj`otoajs os jat ajdy bolbdy quhstoajkfdh, ot os `hpdarkfdh, ks tbh ojvhstojl pufdom
bks fhhj baa`wojch` oj tbh pramhss. Hsshjtokddy, tbh ekrcht os ikr rheavh` irae wbkt ot os bhd` up ta fh.
K]OM bks fhhj ek`h kwkrh ai trk`ojl kjaekdohs oj rhdktoaj ta Mu@hma sojmh kt dhkst @hmhefhr 6>;>, kj` bks
fhhj k`vosh` ai majtojuojl prafdhes aj shvhrkd atbhr ammksoajs fy shvhrkd Mu@hma sbkrhbad`hrs. Pbh K]OM
Maepdkojt rhihrhjmh` ks 6>;=-; wks da`lh` aj Kulust ;9, 6>;=4MDOMC7 Vhihrhjmh Dojc:kj` ta `kth bksjt bk`
k rhspajsh `hspoth ekjy ai tbh ossuhs kdrhk`y fhojl rhihrrh` ta tbhe fy atbhr sbkrhbad`hrs irae
ojiarektoaj pufdosbh` aj tbh rhshkrmb fdal. Ot maehs ks ja surprosh, ks lhjhrkddy, maepdkojts krh eht fy
dajl `rkwj-aut sodhjmhs kj` krh hvhjtukddy iaddawh` fy `hmosoajs k`vosojl tbkt tbh rhludktar `ahsjt bkvh k
prafdhe wotb wbkt bks fhhj rhihrrh` ta tbhe.
K mksh oj paojt wks tbh rhspajsh ta rhmhjt majmhrjs fy k Mu@hma sbkrhbad`hr kfaut phmudokr sekdd trk`hs
idaa`ojl tbh ekrcht. Pbh rhspajsh oj pkrt os sueekrozh` fhdaw.
K]OMs ]urvhoddkjmh thke os kwkrh ai tbh kfavh kddhlktoajs kj` bks kdrhk`y maj`umth` hxthjsovh hjquorohs
kj` rhshkrmb ojta tbh trk`ojl ai Mu@hma sbkrhs. Ot os oepartkjt ta jath tbkt tbh sekdd vkduh trkjskmtoajs ta
wbomb yau rhihr oj yaur dhtthr, krh dkrlhdy tbh rhsudt wotb kdlarotbeom trk`ojl wbomb aithj frhkc `awj dkrlhr
ar`hrs ta eojoeosh ekrcht oepkmt fy trk`ojl k dkrlh juefhr ai sekdd ar`hrs tbraulbaut tbh `ky. \bodh tbh
trkjskmtoajs mkj kpphkr ujusukd wbhj daach` kt oj osadktoaj, tbhy krh jat jhmhsskrody oj`omktovh ai ekrcht
ekjopudktoaj.
Oj skjotozojl sekdd trk`hs, tbh rhspajsh os shhj ta oljarh tbh ekjopudktovh iujmtoaj ai tbash sekdd trk`hs,
ekjy ai wbomb mkj fh sekdd mrassojls majtojuausdy put tbraulb tbh ekrcht ta iarmh @awjtomcs oj promh. ]umb
kmtovoty rhlkr`ojl Mu@hma bks fhhj hxtrhehdy ekjopudktovh. Pbh k`vomh kdsa ahsjt k``rhss tbh ikmt tbkt
kdtbaulb tbh sekdd trk`hs eolbt rhprhshjt dkrlh vaduehs frachj ojta sekdd pkrmhds, k dat ai tbh trk`ojl
rhprhshjts \ksb Prk`hs wotb ja oepkmt aj tbh rhlosthr, kj` wotb hjtotohs trk`ojl fkmc kj` iartb fhtwhhj
hkmb atbhr oj k mkrthd-doch kpprakmb ta trk`ojl. Jar `ahs ot k``rhss tbh krtoiomokd promojl strumturhs
ojtra`umh` fy rhphtotovh sekdd trk`hs kj` tbh jaj-lhjuojh fuyojl kj` shddojl tbhy aithj rhprhshjt.
http://www.smh.com.au/data-point/were-all-just-one-big-super-market-now-20120720-22fo4.htmlhttp://www.smh.com.au/data-point/were-all-just-one-big-super-market-now-20120720-22fo4.htmlhttp://www.smh.com.au/data-point/were-all-just-one-big-super-market-now-20120720-22fo4.htmlhttp://www.smh.com.au/data-point/were-all-just-one-big-super-market-now-20120720-22fo4.htmlhttp://www.smh.com.au/data-point/were-all-just-one-big-super-market-now-20120720-22fo4.htmlhttp://www.theaustralian.com.au/business/markets/short-sellers-ring-up-72bn-profit-over-18-months/story-e6frg916-1226258831302http://www.theaustralian.com.au/business/markets/short-sellers-ring-up-72bn-profit-over-18-months/story-e6frg916-1226258831302http://www.theaustralian.com.au/business/markets/short-sellers-ring-up-72bn-profit-over-18-months/story-e6frg916-1226258831302http://www.theaustralian.com.au/business/markets/short-sellers-ring-up-72bn-profit-over-18-months/story-e6frg916-1226258831302http://www.theaustralian.com.au/business/markets/short-sellers-ring-up-72bn-profit-over-18-months/story-e6frg916-1226258831302http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.theaustralian.com.au/business/markets/short-sellers-ring-up-72bn-profit-over-18-months/story-e6frg916-1226258831302http://www.smh.com.au/data-point/were-all-just-one-big-super-market-now-20120720-22fo4.html8/12/2019 ASIC Complaint 2
5/87
8
Oepartkjtdy, tbhrh krh shvhrkd k``otoajkd trk`ojl ossuhs tbkt krh rhihrrh` ta fy rhshkrmb tbkt krh hotbhr
oljarh` ar `awjpdkyh` fy rhludktary kutbarotohs. K``otoajkd ossuhs wotb wo`h rkjlojl rkeoiomktoajs iar kdd
stamcs trk`ojl aj tbh K]R ojmdu`h7
`krc paad trk`hs kfaut wbomb vhry dottdh os cjawj `hspoth irhquhjt majmhrjs hxprhssh` fykutbarotohs3
dkrlh vaduehs ai aii-ekrcht trkjskmtoajs tbkt bkvh tkchj pdkmh oj mrotomkd eajtbs wotb Mu@hma,wbomb eky rhidhmt tbh rh-k`gustehjt ai bad`ojls fhtwhhj trk`ojl pkrtjhrs kithr ekjopudktovhtrk`hs aj tbh K]R3
ekjopudktovh sbart shddojl prkmtomhs wbomb krh hvhr prhshjt kj` wbomb mkj fh oepdhehjth` tbraulbk ekgaroty ai frachrs aj kjy trk`ojl `ky3 tbhsh majtrofuth ta kj hxtrhehdy krtoiomokd ekrcht3
tbh mavhrojl ai aphj sbart hxpasurhs tbraulb aii-ekrcht k`gustehjts wbomb maepdhthdy kvao` promh`osmavhry. Pbh prkmtomh rhprhshjts k idklrkjt majtrk`omtoaj ta aiiomokd mdkoes ai ikor ekrchts3
tbh idaa`ojl ai ekrchts wotb fuyojl kj` shddojl kmrass k dkrlh rkjlh ai frachrs fut wbhrh tbh trk`hshiihmtovhdy rhdkth fkmc ta tbh skeh ojthrhsts, ar ojthrhsts wba krh kiiodokth` wotb tbhor trk`ojl. ]umb
trk`ojl os bolbdy ekjopudktovh ks ot ojvadvhs jaj-lhjuojh \ksb Prk`hs ar trk`hs tbkt eky jat qukdoiy ks
\ksb Prk`hs fut jhvhrtbhdhss `a jat rhsudt oj fhjhiomokd mbkjlhs ta awjhrsbop. Ot klkoj rkoshs
majmhrjs ai mkrthd-doch majtrad avhr trk`ojl wbomb os ehkjt ta fh autdkwh` fy fatb K]OM kj` tbh KMMM3
frachr maddusoaj/ mkrthd kmtovoty wotb jaj-lhjuojh trk`hs fkmc kj` iartb ta hkmb atbhr kj` wotb kratktoaj ai radhs ks praeojhjt shddhrs kj` praeojhjt fuyhrs aj kdeast k `kody fksos3
kfsaduth majtrad avhr kumtoaj promhs hjiarmh` fy k sekdd lraups ai ojstotutoajkd frachrs wba klkojbkvh ratkth` radhs ks praeojhjt frachrs aj k `kody fksos3
ojstotutoajkd kdlarotbes fhojl kfdh ta mbaash wba tbhy wosb ta trk`h wotb, kj` oi jhmhsskry,kvao`ojl rhtkod ar`hrs. Pbh irajt rujjojl ai ar`hrs kj` tbh ojstkjtkjhaus wotb`rkwkd ai doquo`oty oj
rhspajsh ta tbh krrovkd ai lhjuojh ar`hrs os k ekgar ossuh, fut sa taa os tbh marparkth tkrlhtojl ai
maepkjohs sumb ks Mu@hma fy trk`hs avhr dajlhr phroa`s ai toeh `hsoljh` ta majstrkoj promhs kj`ta iarmh promhs dawhr3
tbh `hdofhrkth tkrlhtojl ai dawhr promhs wotb sekdd pkrmhds ai sbkrhs sad` ta iarmh @awjtomctrkjskmtoajs wbhrh tbh trk`hs krh fhtwhhj frachrs wba krh kiiodokth` oj tbhor trk`ojl kj` wbhrh
ekjy ai tbh @awjtomcs bkvh ojvadvh` sekdd pkrmhds ai sbkrhs put tbraulb ks mrassojls.3
tbh `hdofhrkth shddojl `awj ai pasotovh kjjaujmhehjts shrvojl ta `hstray shjtoehjt iar tbh stamc3kj`
ojso`hr trk`ojl ossuhs rhlkr`ojl k juefhr ai K]R maepkjohs, sphmoiomkddy hvo`hjt oj rhlkr` taMu@hma `urojl tbh phroa` E&L kmmueudkth` sbkrhs `urojl dkth 6>;>.
Pbh hxtrhehdy fdhkc pomturh ai wbkt tkchs pdkmh aj tbh K]R oj kdd stamcs, jat gust Mu@hma, os ek`h hvhj
warsh fy tbh ikmt tbkt tbh ekgaroty ai trk`hs krh maepdhthdy apkquh ta tbh ekrcht kj` k lrhkt ekjy ai
tbhe krh jaj-lhjuojh oj ekchup. ]k`dy, ot os k shroaus oj`omtehjt ai aiiomokds wba mdkoe aur ekrchts krh
ikor kj` trkjspkrhjt, kj` kdsa ai tbash rhspajsofdh iar k`eojosthrojl kj` rhludktojl tbh ekrchts `kody
aphrktoajs tbkt tbhy mkjjat quomcdy o`hjtoiy hjtotohs kssamokth` wotb `ufoaus trk`ojl kmtovoty kj` ekch
tbhe rhspajsofdh iar kjy ekjopudktovh oepkmt tbhor trk`ojl eolbt bkvh aj tbh ekrcht.
Pbh fattae dojh kssamokth` wotb kdd ai tbh kfavh os tbkt tbh Kustrkdokj pufdom jhh` ta fh praphrdy ojiareh`
kfaut systheom ekjopudktoaj ossuhs jat k``rhssh` uj`hr murrhjt krrkjlhehjts. Pbhy jhh` ta fh kfdh ta ekch
oj`hphj`hjt `hmosoajs kfaut tbhor ojvhstehjts kj` jat fh iarmh` ojta k `hhpdy maepraeosh` systhe fy
Lavhrjehjt `hmrhh sumb ks wotb maepudsary suphrkjjuktoaj. ]umb iarhwkrjojl os rhquorh` kt dhkst ujtod sumb
toeh ks k ekgar avhrbkud ai tbh systhe mkj fh oepdhehjth` tbkt mkj lukrkjthh ikor kj` trkjspkrhjt ekrchts,
kj` mkj hjsurh kj hiihmtovh kj` rhspajsovh rhludktary rhloeh os oj pdkmh.
8/12/2019 ASIC Complaint 2
6/87
9
K]OM MAE^DKOJP 2.6]XEEKV_
PVK@OJL O]]XH] KMMAE^KJ_OJL E&L FX_OJL @XVOJL 6>;>
K]OM Maepdkojt 2.6 rhdkths ta tbh trk`ojl ai Mu@hma sbkrhs tbkt taac pdkmh `urojl dkth Amtafhr kj` tbraulb
Javhefhr kj` @hmhefhr 6>;> wbhj tbh E&L Lraup hxthj`h` tbhor sufstkjtokd sbkrhbad`ojl oj tbh
Maepkjy. Pbh aj-ekrcht fuyojl wbomb keaujth` ta ;>.68 eoddoaj sbkrhs fhtwhhj Amtafhr 6? kj` @hmhefhr
;0, 6>;>, iaddawh` k ;> eoddoaj sbkrh pdkmhehjt shmurh` irae Mu@hma wbhj tbh Maepkjy wks uj`hr prhssurhiaddawojl k rhsaurmh uplrk`h rhdhksh` aj Kulust ;2, 6>;>. Pbh rhsaurmh stkthehjt wks surrauj`h` fy
majiusoaj fhmkush rhparth` GAVM maepdokjt rhsaurmhs `o`jt shhe ta rhidhmt tbh dochdy rhkdotohs ai eojojl,
hsphmokddy lovhj tbkt dkrlh keaujts ai bolb lrk`h mapphr eojhrkdosktoaj, prhvoausdy rhparth` fy tbh Maepkjy
oj juehraus Ekrcht Vhdhkshs, `o` jat kpphkr ta fh k`hqukthdy rhprhshjth` oj rhsaurmh hstoekths.
Pbh majiusoaj kfaut tbh rhsaurmh wks shozh` upaj fy sapbostomkth` ojvhstars wba `hstkfodozh` tbh
maepkjy fy tkcojl promhs eumb dawhr. Pbrhh afshrvktoajs stkj` aut oj rhdktoaj ta hvhjts surrauj`ojl tbh
Kulust ;2 kjjaujmhehjt.
Pbh sbkrh promh iaddawojl tbh rhsaurmh uplrk`h `o` jat ikordy rhidhmt tbh hmajaeom kttrofuths ai tbhehksurh` kj` oj`omkth` rhsaurmh ks kjjaujmh`, orrhsphmtovh ai tbh dkrlh keaujts ai bolb lrk`hmapphr shheojldy jat ojmdu`h` oj hstoekths.
Pbh pdkmhehjt shmurh` fy E&L wks lrkjth` oj kj ktthept ta stkfodozh tbh Maepkjy kj` waud`jtbkvh ammurrh` oi ot wksjt iar tbh `rkektom sbkrh promh sduep.
Prk`ojl kj` rhlostry `ktk `heajstrkth tbkt trk`ojl fhbkvoaurs ush` ta `hstkfodozh tbh Maepkjy fytkcojl promhs sufstkjtokddy dawhr whrh bolbdy ekjopudktovh.
Oepartkjtdy, tbh `ufoaus trk`ojl fhbkvoaurs ush` ta maddkpsh tbh sbkrh promh oj Kulust 6>;> whrh klkoj
hvo`hjt oj sufshquhjt trk`ojl ks E&L ojmrhksh` tbhor stkch tbraulb aj-ekrcht fuyojl. Bawhvhr wbhj
trk`ojl `ktk os ksshssh` oj dolbt ai tbh luo`hdojhs pravo`h` fy k rhmhjt Bolb Maurt `hmosoaj rhlkr`ojl sbkrh
promh ekjopudktoaj, hjtotohs rhspajsofdh iar kfhrrkjt trk`ojl trhj`s kpphkr ta bkvh shroausdy maepraeosh`
tbh ekrcht. Vhshkrmb bks sbawj tbkt krtoiomokd promojl dhvhds kj` jaj-lhjuojh fuyojl kj` shddojl whrh
mdhkrdy tbh `aeojkjt ihkturhs ai tbh trk`ojl tbkt taac pdkmh `urojl dkth 6>;> kj` hkrdy 6>;;.
Hvhjts surrauj`ojl tbh E&L fuyojl mkepkolj tbkt mkj ajdy fh hxpdkojh` sktosikmtarody oj thres ai sbkrh
promh ekjopudktoaj ojmdu`h7
Dkrlh vaduehs ai jaj-lhjuojh trk`ojl mburj whrh suppdoh` ta tbh ekrcht.Prk`ojl mburj wks k ihkturh ai trk`ojl oeeh`okthdy iaddawojl tbh Kulust ;2, 6>;> kjjaujmhehjt
kj` majtojuh` ujkfkth` ujtod kithr tbh E&L kmmueudktoaj wks maepdhth` aj @hmhefhr ;0, 6>;>.Pbh trhj` os rhidhmth` fy eajtbdy trk`ojl vaduehs kj` phroa`s wbhrh dkrlh keaujts ai trk`ojl `o`jt
oepkmt tbh rhlosthr. Oj Javhefhr wbhj tbh fudc ai E&L fuyojl taac pdkmh, krauj` =?% ai frachr
trk`ojl kpphkrh` ta la eossojl ks ot `o`jt bkvh kj oepkmt aj tbh rhlosthr.4Vhihr Maepdkojt ; ^l. =?:
^hroa` Eajtbdy Yaduehs Maeehjt
Gkj-Gudy Kvhrklh - 6>;> ;6,00?,2=? Eajtbs prhmh ojl tbh rhsaurmh uplrk`h
Kulust ?=,=629 Prk`ojl kssamokth` wotb tbh rhsaurmh up-lrk`h
]hpthefhr 60,>86,2;< Eajtbs iaddawojl tbh rhsaurmh up-lrk`h
Amtafhr =6,>88,8;;
Javhefhr 06,8==,6;; ;;
8/12/2019 ASIC Complaint 2
7/87
;>, XF] ]hmurotohs wks rhspajsofdh iar 60 % ai kdd @awjtomc trkjskmtoajsfut bhd` k shddojl ekrcht sbkrh ai ai gust sbkrhs oj sozh (o.h., ?6% ai @P kdd mrassojls rhprhshjth` sekdd trkjskmtoajs kvhrklojl
gust ;60 sbkrhs). Pbh trk`ojl fhbkvoaur strajldy rhidhmts ktthepts ta pravo h `awjwkr`
prhssurh ta promhs rktbhr tbkj lhjuojh hxmbkjlhs ai sbkrhs fhtwhhj mdohjts.
a Avhr iaur eajtbs ai trk`ojl (Amtafhr, Javhefhr, @hmhefhr 6>;> kj` Gkjukry 6>;;) XF]whrh rhspajsofdh iar 60.8% ai kdd @awjtomcs fut bhd` k shddojl ekrcht sbkrh ai 2.0%
a XF] os kdsa shhj ta fh kmtovh oj suppartojl @awjtomcs fy fhojl tbh fuyhr ai 6>.=% ai kdd@awjtomc trkjskmtoajs avhr tbh iaur-eajtb phroa`, wotb gust avhr bkdi ai tbhe fhojl
mrassojls.
Kjaekdaus Prk`ojl @ktk
Pbh trk`ojl stktostoms fy dhk`ojl frachrs avhr tbh iaur- eajtb phroa` krh sueekrozh` oj tbh tkfdh. Pbhy
krh dosth` oj ar`hr ai shddojl vaduehs.
]HDDOJL ]PKPO]POM] FX_OJL ]PKPO]POM]
Frachr Yadueh % ]hdds @P % Yadueh % Fuys @P % JHP
MAEE ;2,96 ;?.;% ;6.0% ;9,9>6,=89 ;% ;0.>% -6,>
MOPO 0,??9,?8= 8.;% =.=% 8,2% ;6.>% 2,=0? 9.8% 0.;% 8,69;,02,9=9
]FKV 8,99;,6>0 8.2% 6.?,;28
FF_ =,?62,>== 0.>% 6.>% =,0==,?6= =.8% 6.2% -0?0,;;>
EKM[ =,=;0,
EKM^ 6,>6?,0
8/12/2019 ASIC Complaint 2
9/87
?
]HDDOJL ]PKPO]POM] FX_OJL ]PKPO]POM]
Frachr Yadueh % ]hdds @P % Yadueh % Fuys @P % JHP
Awjtomc
P^^E;,9% -2?,2>,=>< 6.>% >.?% 6,>8=,?=0 6.;% ;.>% ;;=,96.?% ;,8.;% -;6,?9;
G^E 6.=% >.;% 6,00>,860 6.8% ;.9% 6,;90,9;6
^]D ;,>>=,?;< ;.>% >.9% 6>6,?99 >.6% >.;% -2>>,?8;
IA]P 8;?,.;% 28;,;.?% >.6% ==;,0>>@6ER 8;9,?6> >.8% >.=% 89;,8>> >.9% >.;% 00,82>
Atbhrs 9,;8;2 9.8% 8.=% 0,662,;;2 0.=% 8.;% -;,?62,?>>
Patkd ?
8/12/2019 ASIC Complaint 2
10/87
;>
Kjaekdaus @awjtomc @ktk
K maepkrosaj ai tbh juefhrs ai @awjtomcs rhmar`h` fy frachrs ks k rhsudt ai tbhor shdd trkjskmtoajs,
klkojst tbhor shddojl vaduehs oj tbh ekrcht lhjhrkddy, mkj fh ush` ta pojpaojt ekjopudktovh trk`ojl
kmtovoty. Ot os rhksajkfdy hxphmth`, iar hxkepdh, tbkt oi k frachr wks rhspajsofdh iar ;>% ai kdd shddojl put
tbraulb tbh ekrcht, tbhj tbh juefhr ai @awjtomcs kssamokth` wotb tbkt shddojl sbaud` kdsa kppraxoekth
;>%. Hxtrhehs hotbhr so`h krh jat ajdy vohwh` ks kjaekdaus fut tbhy krh east dochdy ekjopudktovh kj` k
rhidhmtoaj ai `ufoaus trk`ojl klhj`ks rktbhr tbkj lhjuojh shddojl.
Frachrs wba majsosthjtdy rhmar` bolb dhvhds ai @awjtomcs fut ajdy bkvh sekdd shddojl praiodhs oj tbh
ekrcht kpphkr eatovkth` fy iarmojl promhs dawhr, rktbhr tbkj lhjuojhdy kttheptojl ta kmbohvh tbh fhst
promhs iar tbhor mdohjts. @hspoth rh`umh` shddojl praiodhs ks ehksurh` fy tbh vadueh ai shddojl, dkrlh
juefhrs ai @awjtomcs krh usukddy kmbohvh` fy frachrs usojl dkrlh juefhrs ai sekdd trkjskmtoajs,
ojmdu`ojl frachr mrassojls, tbkt iarmh promh rh`umtoajs.
Kfhrrkjt trk`ojl mbkrkmthrostoms krh hxhepdoioh` fy XF] ]hmurotohs wotb tbh iaddawojl mbkrts maepkrojl
tbhor @P ojvadvhehjts klkojst tbhor shddojl ekrcht sbkrhs iar tbh eajtbs Amtafhr 6>;> tbraulb Gkjukry
6>;;. Pbh mbkrts sbaw rhmurrojl eajtbdy kjaekdohs wbhrh sekdd vaduehs ai shddojl bkvh rhsudth` oj
`osprartoajkthdy bolb vaduehs ai @awjtomcs.
XF] ]hmurotohs mdhkrdy `ahsjt kpphkr ta fh eatovkth` fy ekxoeozojl rhturjs iar tbhor mdohjts kj` tbhor
trk`ojl rhquorhs k tbarulb hxkeojktoaj. XF] ]hmurotohs bawhvhr os jat tbh ajdy frachr hxbofotojl
kjaekdaus @awjtomc trhj`s kj` k maepdhth rhvohw ai kdd sumb trk`ojl os urlhjtdy rhquorh` ks ot os k trhj`
tbkt os prhvkdhjt kmrass kdd K]R stamcs, jat gust Mu@hma.
XF] - @awjtomcs Yhrsus ]hddojl - Amtafhr 6>;>
Pbh mbkrt `rkws ktthjtoajs ta `kys wbhrh trk`ojl bks fhhj majtrkry ta tbh `orhmtoajs sht aut fy Bolb Maurttbkt rhihrrh` ta lhjuojh shddhrs ks shhcojl ta kmbohvh tbh bolbhst passofdh promhs iar tbhor sbkrhs. ]hddojl aj
Amtafhr 8, 2, ;;, ;6, ;2, ;?, 68, 69 kj` 6? mdhkrdy rhprhshjts sekdd vaduehs ai shddojl tbkt daacs ta bkvh
kllrhssovhdy tkrlhth` dawhr promhs. Pbh tkfdh dosts tbh prapartoaj ai trkjskmtoajs ihwhr tbkj 0>> sbkrhs
hkmb `ky talhtbhr wotb tbh kvhrklh pkrmhd sozh iar sumb sekdd trk`hs.
>%
;>%
6>%
=>%
0>%
8>%
9>%
%
2>%
Amt
;
Amt
0
Amt
8
Amt
9
Amt
Kvl.
Amt->8 ;>>% 22 ?2% ;68
Amt-;; ;>>% ;>>
Amt-;6 ?0% ;>% ;;
Amt-;? 28% ;9>
Amt-68 62% 6?2
Amt-69 ;>>% 2?
Amt-6? 02% ;>8
Aj Amt ;2, @awjtomc trk`hs bk` pkrmhd sozhsfhtwhhj 2 kj` ;9 sbkrhs
8/12/2019 ASIC Complaint 2
11/87
;;
XF] - @awjtomcs Yhrsus ]hddojl - Javhefhr 6>;>
XF] - @awjtomcs Yhrsus ]hddojl - @hmhefhr 6>;>
XF] - @awjtomcs Yhrsus ]hddojl - Gkjukry 6>;;
>%
;>%
6>%
=>%
0>%
8>%
9>%
%
Jav
;
Jav
6
Jav
=
Jav
0
Jav
8
Jav
2
Jav
?
Jav
;>
Jav
;;
Jav
;8
Jav
;9
Jav
;
>%
;>%
6>%
=>%
0>%
8>%
9>%
%
@hm
;
@hm
6
@hm
=
@hm
@hm
;=
@hm
;0
@hm
;8
@hm
;9
@hm
;
@hm
6;
@hm
66
@hm
60
@hm
6?
@hm
=>
>%
;>%
6>%
=>%
0>%
8>%
9>%
%
Gkj
0
Gkj
8
Gkj
Gkj
;;
Gkj
;6
Gkj
;0
Gkj
;
Gkj
68
Gkj
6
Top Related