Warminger slapped with hefty penalty (+ JUDGMENT)

The High Court has handed former fund manager Mark Warminger a substantial penalty but the appeals continue.

Friday, June 30th 2017, 12:25PM

Warminger, who worked for Milford Asset Management, was found guilty of two counts of market manipulation, under the Securities Markets Act, earlier this year.

In his penalty decision released yesterday, Justice Geoffrey Venning said it was “deliberate conduct by a very experienced market trader in an attempt to take advantage of parties on the other side of the transaction”.

While the maximum penalty for the combined offences was $3.8 million, Justice Venning said several mitigating factors had to be taken into account when establishing the penalty.

These included Warminger’s previously unblemished record and an earlier $1.5 million payment in lieu of penalty and costs by Milford Asset Management.

Once these factors were considered, the starting point for a penalty was $500,000, but Warminger’s health issues meant this amount was reduced by $100,000, leaving the penalty at $400,000.

As a result of the penalty order Warminger automatically received a five year management ban.

Justice Venning said he accepted that the finding of market manipulation by Warminger has had a major impact on him.

“His entire working life of almost 20 years has been in the financial sector, either as analyst or fund manager. Given the publicity associated with these proceedings and the outcome, that career will not be open to him in the future.

“That, however, is always likely to be the situation in cases of this nature.”

Warminger’s penalty will go to the Financial Markets Authority (FMA) for legal costs.

The FMA said that it is currently considering the penalty judgment.

The original judgment is currently being appealed by Warminger and cross appealed by the FMA, with a hearing expected in October.

READ THE FULL JUDGMENT HERE

Read more:

Warminger, FMA appeal

Warminger trial shows traders purpose important

Tags: conduct FMA funds management Market Manipulation Milford Asset Management