NOT BOTS BUT MARKET MANIPULATION THAT IS ILLEGAL.The company was...

NOT BOTS BUT MARKET MANIPULATION THAT IS ILLEGAL.

The company was in the midst of a takeover at the time and, according to evidence heard in the Perth District Court, Scook was keen to increase his stake. Through his private company Challiston Pty Ltd, he subscribed to take part in a placement. The 2 million Intrepid shares he picked up for 50c each later debuted on the sharemarket at $1.33, representing a sizeable profit for the businessman.

However, as the court later found, Scook had been using multiple accounts through several brokers and a pool of traders to manipulate trading. Unbeknown to the brokers and traders, Scook would arrange both sides of a transaction in order for a trade to be executed.

Some of the charges related to wash trades (transactions that involve no change in beneficial ownership of the shares traded) and matched orders (trades arranged between associated parties).

Both are illegal.

Scook was found guilty of 158 counts of market rigging, and was sentenced to three years' jail, with a minimum 14 months to be served.
http://www.perthnow.com.au/business/news/convicted-perth-market-rigger-dean-scook-back-in-business/story-e6frg2qu-1225784208684