Photo: Oleg Karsaev / “Kommersant”
The Kirov district court of Kazan on 13 August sentenced a former trader of Bank “AK bars” Artem Sulinskogo to 2.5 years of imprisonment for market manipulation in especially large size. This is Russia’s first sentence on this article, (CH 2, article 185.3 of the criminal code), reported owned by the family Demyan Kudryavtsev, the newspaper “Vedomosti”.
Lulinski from 2011 to 2016 with a personal brokerage accounts bought shares at market prices, then put them up for sale at 2.4 to 5 percent above market. He bought securities already work account. As explained by the head of Department of the Central Bank to combat unfair practices Valery Lyakh, the amount of transactions reached tens of millions of rubles, so the trader was able to influence the market.
The trader has managed to earn 77 million rubles. In the five years he spent 494 operations 31 security. In particular, he manipulated the shares of VTB, Sberbank and Gazprom.
About illegal activities Sulinskogo became known in the course of internal audits in the Bank. He was accused of failure to comply with the requirements of the protection of the interests of the Bank as an investor and was fired. “AK bars” has estimated the damage at 76 million rubles, its management has addressed in law enforcement bodies. The investigative Committee brought criminal case to the court in April last year. In addition to probation, Lulinha banned from trading in securities for three years. The guilt he fully admitted, and partially compensated the losses of the Bank.
Criminal liability for market manipulation was introduced in Russia in 2010. However, law enforcement agencies preferred to conduct such cases on charges of fraud, since this article already had experience. The FMG Group partner Michael Fatkin noticed that the investigator usually wants to work with businesses that are easier to bring to court, and prove the manipulation is more complex than fraud. The Central Bank noted the importance of the ban on trading for the trader. “The integrity of the financial market, the credibility of the business depend on the reputation of all the participants”, — explained the representative of the Bank of Russia.
Last year, the Central Bank held 36 checks on suspicion of insider dealing and market manipulation and identified 16 such cases. Three of them he appealed to law enforcement agencies. Article on market manipulation, provides punishment till seven years of imprisonment with payment of a fine and a ban to occupy certain positions.
Video, photo All from Russia.