ASIC obtained declarations today in the Federal Court that the former Managing Director and Chief Executive Officer of listed biotechnology company, Select Vaccines Limited (Select Vaccines), Dr Martin Soust, engaged in market manipulation and false trading.

The declarations of contravention relate to the purchase of Select Vaccines shares by Dr Soust in his mother’s name on 31 December 2007, shortly before the close of the market for the calendar year. This purchase had the effect of increasing the price of the company’s shares from 2.0 cents to 2.5 cents (a 25 per cent increase).

ASIC alleged that it was Dr Soust’s intention to increase the price of the shares so as to secure a performance bonus from Select Vaccines for Martin Soust & Co Pty Ltd (Martin Soust & Co). Dr Soust is a director and shareholder of Martin Soust & Co.

Justice Goldberg also found that Dr Soust breached his director’s duties, in that he failed to act in good faith in the best interests of Select Vaccines, and improperly used his position as a director of Select Vaccines to gain an advantage for himself and Martin Soust & Co.

A further hearing into whether Dr Soust should pay a pecuniary penalty and/or be disqualified from managing a corporation is set down for 7 April 2010 in the Federal Court in Melbourne.

Further details are available from ASIC.