New Zealand’s Financial Markets Authority (FMA) – Te Mana Tatai Hokohoko announced that the High Court has ordered experienced retail investor Kok Ding Cheng to pay a NZD 198,000 pecuniary penalty to the Crown after finding him liable for trade-based market manipulation in NZX-listed Rua Bioscience Limited (RUA) shares. The case concerned five small orders (ranging from NZD 59 to NZD 540) placed over a 10-day period in late 2020 through an ASB Securities brokerage account. The Court found each order breached section 265 of the Financial Markets Conduct Act 2013, concluding the orders were deliberately placed to increase the price and/or demand for Rua shares while Mr Cheng held a material shareholding in the company. Mr Cheng did not file a statement of defence, and the matter proceeded by way of a formal proof hearing; the penalty will be paid to the Crown after first being applied to the FMA’s actual costs of bringing the case.
New Zealand Financial Markets Authority 2025-05-01
New Zealand Financial Markets Authority secures NZD 198,000 penalty after court finds retail investor liable for market manipulation
New Zealand’s Financial Markets Authority announced that the High Court ordered Kok Ding Cheng to pay a NZD 198,000 penalty for trade-based market manipulation in Rua Bioscience Limited shares, following breaches of the Financial Markets Conduct Act 2013. The penalty will cover the FMA’s costs before being paid to the Crown.