Former Perth director receives suspended jail term for manipulation of radar Iron shares

A former Perth corporate finance director has been sentenced after pleading guilty to manipulating the market in Radar Iron shares.

A former Perth company director has been spared jail after pleading guilty to market manipulation.

Former Perth corporate finance director Mr Ananda Kathiravelu has been spared a jail term after pleading guilty to manipulating the market in Radar Iron shares.

The Australian Securities and Investments Commission said Kathiravelu was sentenced to 12 months imprisonment, however was released on a $10,000, seven month good behaviour bond.

ASIC said Kathiravelu conspired with another person to take part in transactions which had, or were likely to have “the effect of creating or maintaining an artificial price for Radar Iron Limited (Radar) shares traded on the Australian Securities Exchange (ASX) between 12 May 2016 and 17 May 2016’’.

“The transactions occurred one day prior to the suspension of Radar shares from the official quotation of the ASX, during which a capital raising by Radar took place,’’ ASIC said.

“Mr Kathiravelu was a director of Radar and of the corporate finance firm, Armada Capital, which was the lead manager of the capital raising. Armada Capital Pty Ltd stood to gain a 5 per cent fee of the funds raised in the capital raising if it successfully raised over $5 million.

“The Court found Mr Kathiravelu’s offending was serious and that he had attempted to increase the attractiveness of the capital raising by artificially increasing the price of Radar shares immediately prior to the suspension.’’

As a result of his conviction, Mr Kathiravelu, who pleaded guilty to the charge or market manipulation on August 27, is automatically disqualified from managing corporations until 8 February 2026.

ASIC Commissioner Cathie Armour said: “Market manipulation erodes public confidence in the fair, orderly and transparent operation of the market.

“ASIC will take action against misconduct which undermines the fairness and integrity of our financial markets.”

Radar Iron no longer exists with Weebit Nano backdoor listing into its shell in 2016.