ASIC bans Mark Kawecki for seven years for misleading IPO share applications

ASIC has banned Mark Damion Kawecki of Frankston, Victoria from providing financial services for seven years.

The banning follows an ASIC investigation into Mr Kawecki’s conduct when applying for shares under the initial public offerings (IPOs) of companies that subsequently listed on ASX between 2015 to 2017. A company must meet the 'minimum spread requirement' (a minimum number of unrelated shareholders in the company) under the ASX Listing Rules before its shares can be quoted and traded on ASX.

The ASIC investigation found that in relation to at least three IPOs, Mr Kawecki:

• provided false information regarding the identity of the beneficial holders of shares that he applied for in the name of entities he owned and controlled;
• submitted share applications in which he deliberately inserted false addresses for applicants;
• knew that the false information and addresses he supplied would be provided to ASX;
• did so to ensure his share applications would count toward meeting the minimum shareholder requirement for the companies to be listed; and
• received a fee per application that he provided.

Following a hearing, the ASIC delegate found that Mr Kawecki had failed to comply with a financial services law by knowingly engaging in conduct that was likely to mislead, in contravention of s1041H(1) of the Corporations Act.

ASIC Commissioner Cathie Armour said, 'Attempts to achieve the minimum spread requirement through artificial means is inconsistent with the fair and orderly operation of the market. ASIC will take action to ban people from providing financial services if they engage in conduct that undermines the integrity of our markets.'

Mr Kawecki has a right to apply to the Administrative Appeals Tribunal for review of ASIC’s banning order.

The ASIC investigation into Mr Kawecki and related conduct concerning the provision of spread through artificial means is ongoing.