ASIC has succeeded in obtaining a pecuniary penalty order and disqualification order in civil penalty proceedings against Dr Martin Soust of Malvern East, Victoria. Mr Soust was formerly the chief executive officer of listed biotechnology company, Select Vaccines Limited (Select Vaccines).

These orders were made by the Honourable Justice Goldberg of the Federal Court. On 15 February 2010 Justice Goldberg made declarations of contravention relating to the purchase of Select Vaccine shares by Dr Soust in his mother’s name on 31 December 2007. The purchase had the effect of increasing the price of the company’s shares from 2.0 cents to 2.5 cents (a 25% increase)(refer 10-24AD).

After a hearing in relation to the appropriate penalty on 7 April 2010, Justice Goldberg today ordered that Dr Soust pay a pecuniary penalty of $80,000 and be disqualified from managing a corporation for10 years. Justice Goldberg also ordered that Mr Soust pay ASIC’s legal costs.

This matter was referred to ASIC by the Australian Securities Exchange (ASX).

Dr Soust has 21 days to appeal.

Further details are available at ASIC.