ASIC gets the message ... and leaves one for Whitehaven hoaxster
Anti-coal activist Jonathan Moylan remained at his bush camp in NSW on Tuesday, as the Australian Securities and Investments Commission continued its inquiries into his market-shifting hoax.
Mr Moylan said ASIC had left a message on his phone but he was seeking legal advice before speaking with the regulator. He said he was not hiding and regulators knew where to find him after the massive publicity that his stunt had received.
"I will stay where I've been for the last 157 days but, if anyone wants to come and find me, they know where I am," he said. "I am quite happy to take responsibility."
That could have serious ramifications for Mr Moylan, given that ASIC has confirmed its inquiries are focusing on section 1041E of the Corporations Act. The provision can lead to criminal charges and legal experts have predicted that ASIC will make an example of this case.
Regulators have been urged to toughen up on such hoaxes, given that similar events have struck retailer David Jones and Macmahon Holdings in recent months.
The hoax involved a fake press release from ANZ and falsely claimed that the bank had cancelled a recent $1.2 billion loan that was arranged for Whitehaven.
The loan was to help Whitehaven build a new coalmine at Maules Creek, close to Mr Moylan's protest camp.
The stunt led the Whitehaven share price to fall by almost 9 per cent before recovering.
Struggling coal baron Nathan Tinkler is the biggest shareholder in Whitehaven and Mr Moylan urged him to divest his coal shares.
The managing director of Whitehaven, Tony Haggarty, said Whitehaven would be better off if large institutions took over Mr Tinkler's stake.
"If he were to sell his shares to the market, if that 20 per cent were held by broad-based institutional shareholders, that would be ideal," he told Bloomberg.
He said Whitehaven would look to sell a portion of the Maules Creek mine to an offtake partner.
Frequently Asked Questions about this Article…
A fake press release falsely claimed ANZ had cancelled a $1.2 billion loan arranged for Whitehaven Coal. The hoax temporarily wiped about $314 million off Whitehaven's market value and sent the share price down nearly 9% before it recovered, creating short-term market volatility that everyday investors would notice.
Anti-coal activist Jonathan Moylan said he was responsible for the stunt. At the time he remained at his protest bush camp in New South Wales and told media he was seeking legal advice before speaking with regulators.
The fake announcement claiming ANZ cancelled a $1.2 billion loan caused Whitehaven's share price to fall by almost 9% in the immediate aftermath, before the price subsequently recovered as the news was revealed to be false.
The Australian Securities and Investments Commission (ASIC) launched inquiries into the incident and confirmed it is focusing on section 1041E of the Corporations Act. That provision can lead to criminal charges, so legal experts have suggested ASIC may pursue the matter aggressively.
The article notes that section 1041E is the law ASIC is examining and that the provision can lead to criminal charges. In this context, it relates to prohibited conduct around false or misleading market communications that can harm investors and market integrity.
No. The report that ANZ cancelled the $1.2 billion loan was part of a fake press release. The loan had been arranged to help fund Whitehaven's Maules Creek project; the cancellation claim was false.
The $1.2 billion loan mentioned in the fake release was said to support Whitehaven's new Maules Creek coal mine. The mine is located close to Jonathan Moylan's protest camp, and the stunt appeared linked to those anti-coal protests.
Struggling coal magnate Nathan Tinkler was identified as Whitehaven's biggest shareholder, and Moylan urged him to divest. Whitehaven managing director Tony Haggarty said the company would prefer if large institutional investors held that stake, and that Whitehaven may sell a portion of the Maules Creek mine to an offtake partner.
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