22/04/2010 12:33
The Securities and Exchange Commission imposed administrative fines of total €6.5 million to Ioannis Vardinoyiannis, Amalia Vardinoyiannis and Christodoulos Ellinas, Filippos Larcos, Antonis Pissarides and Giorgos Yiangou for market manipulation actions and the provision of false data to the Commission. The breaches concern the acquisition on behalf of Amalia Vardinoyiannis of 19.4 million shares of Megabet (Sea Star) on 29.3.2007. At the same time, the Commission decided to submit all data to the Legal Service of the Republic so that the Prosecutor General decides whether there is a penal offence issue on behalf of Messrs. Ioannis Vardinoyiannis, Amalia Vardinoyiannis, Christodoulos Ellinas, Filippos Larcos, Antonis Pissarides and Giorgos Yiangou.
According to the announcement, Mr. Ioannis Vardinoyiannis breached article 9(1)(a) of the Law because although he held a confidential information and although he knew or ought to know that it was a confidential information, he proceeded with the acquisition of 19,358,487 shares via his sister, Amalia Vardinoyiannis.
Pursuant to article 9(1)(a) of the Law:“9(1) The persons who hold confidential information directly or indirectly are not allowed to:(a)Use this information to acquire or dispose or try to acquire or dispose for their own account or on behalf of third parties or via persons that have close bonds with them, directly and indirectly, financial means concerning this information”.
In this case, the confidential information was the change of the Company’s activities as to shipping and Mr. Vardinoyiannis’ participation in its share capital. This information was deemed specific and if it was released, it would affect significantly, at the Commission’s discretion, the price of the Company’s share.
The data that the Commission has at its disposal show that Mrs. Amalia Vardinoyiannis was an interposed person of Mr. Ioannis Vardinoyiannis, therefore, the acquisition of 19,358,487 shares was actually an acquisition by Mr. Ioannis Vardinoyiannis indirectly.
Mrs. Amalia Vardinoyiannis proceeded with the acquisition of 19,358,487 shares at the price of 0.09 cents per share, that is, €1,742,264. On 29.6.2007, Mrs. Amalia Vardinoyiannis proceeded with the sale of 19,358,487 shares at the price of 0.42 cents per share, that is, €8,130,565. From the purchase and sale of the 19,358,487 shares on 29.3.2007 and 29.6.2007, Mrs. Amalia Vardinoyiannis enjoyed a profit of €6,388,301.
As a result, the Commission decided that Mr. Ioannis Vardinoyiannis, via an interposed person, that is his sister Amalia Vardinoyiannis, evidently obtained benefit of €6,388,301 from the transaction of 19,358,487 shares in the CSE.
After taking into account the representations of Mr. Ioannis Vardinoyiannis and the obtaining of a benefit, the Commission decided to impose an administrative fine of €6,388,300 for violating article 9(1)(a) of the Law, pursuant to article 10(2) of the Law.
50k to A. Vardinoyiannis
The SEC decided that Mrs. Amalia Vardinoyiannis breached article 42 of the SEC Law – N. 64(I)/2001 – since it provides false and misleading information to the investigators.
In her testimony, Mrs. Amalia Vardinoyiannis was presented before the investigators as the real beneficiary of the 19.358,487 shares that the Company acquired, while Mrs. Amalia Vardinoyiannis has been regarded as interposed person of Mr. Ioannis Vardinoyiannis and, as a result, the acquisition of 19,358,487 shares was actually an acquisition of Mr. Vardinoyiannis’ behalf in an indirect way.
In order to determine the administrative, the Commission took into account the seriousness that the legislator gives to such violations, because through this Mr. Ioannis Vardinoyiannis proceeded with the use of confidential information breaching article 9(1) of the Law. The fact that this is the first time that Mrs. Amalia Vardinoyiannis has breached a Cyprus Law was taken seriously into account before determining the fines and the Commission exercised the biggest possible - under the circumstances – leniency, since the maximum administrative fine in Article 38 of the Law is 100 thousand pounds (170,860 euros).
Based on the aforementioned investigation, the SEC decided that Messrs. Christodoulos Ellinas, Filippos Larcos, Antonis Pissarides and Giorgos Yiangou violated article 42 of the SEC Law – N. 64(I)/2001 since they provided false and misleading information to the investigators.
After taking into account the representations of Messrs. Ellinas, Larcos, Pissarides and Yiangou, the Commission decided to impose an administrative fine of €20,000 each to Messrs. Ellinas and Larcos and €10,000 each to Messrs. Pissarides and Yiangou for violating article 42 of the Law, pursuant to article 38 of the Law.
For Messrs. Ellinas and Larcos it took additionally into account that within the framework of their professional capacity, they gave false and/or misleading information to the investigators. The Commission demands by the professionals to show bigger assiduity and seriousness when called to provide information to the Commission.
According to the announcement, Mr. Ioannis Vardinoyiannis breached article 9(1)(a) of the Law because although he held a confidential information and although he knew or ought to know that it was a confidential information, he proceeded with the acquisition of 19,358,487 shares via his sister, Amalia Vardinoyiannis.
Pursuant to article 9(1)(a) of the Law:“9(1) The persons who hold confidential information directly or indirectly are not allowed to:(a)Use this information to acquire or dispose or try to acquire or dispose for their own account or on behalf of third parties or via persons that have close bonds with them, directly and indirectly, financial means concerning this information”.
In this case, the confidential information was the change of the Company’s activities as to shipping and Mr. Vardinoyiannis’ participation in its share capital. This information was deemed specific and if it was released, it would affect significantly, at the Commission’s discretion, the price of the Company’s share.
The data that the Commission has at its disposal show that Mrs. Amalia Vardinoyiannis was an interposed person of Mr. Ioannis Vardinoyiannis, therefore, the acquisition of 19,358,487 shares was actually an acquisition by Mr. Ioannis Vardinoyiannis indirectly.
Mrs. Amalia Vardinoyiannis proceeded with the acquisition of 19,358,487 shares at the price of 0.09 cents per share, that is, €1,742,264. On 29.6.2007, Mrs. Amalia Vardinoyiannis proceeded with the sale of 19,358,487 shares at the price of 0.42 cents per share, that is, €8,130,565. From the purchase and sale of the 19,358,487 shares on 29.3.2007 and 29.6.2007, Mrs. Amalia Vardinoyiannis enjoyed a profit of €6,388,301.
As a result, the Commission decided that Mr. Ioannis Vardinoyiannis, via an interposed person, that is his sister Amalia Vardinoyiannis, evidently obtained benefit of €6,388,301 from the transaction of 19,358,487 shares in the CSE.
After taking into account the representations of Mr. Ioannis Vardinoyiannis and the obtaining of a benefit, the Commission decided to impose an administrative fine of €6,388,300 for violating article 9(1)(a) of the Law, pursuant to article 10(2) of the Law.
50k to A. Vardinoyiannis
The SEC decided that Mrs. Amalia Vardinoyiannis breached article 42 of the SEC Law – N. 64(I)/2001 – since it provides false and misleading information to the investigators.
In her testimony, Mrs. Amalia Vardinoyiannis was presented before the investigators as the real beneficiary of the 19.358,487 shares that the Company acquired, while Mrs. Amalia Vardinoyiannis has been regarded as interposed person of Mr. Ioannis Vardinoyiannis and, as a result, the acquisition of 19,358,487 shares was actually an acquisition of Mr. Vardinoyiannis’ behalf in an indirect way.
In order to determine the administrative, the Commission took into account the seriousness that the legislator gives to such violations, because through this Mr. Ioannis Vardinoyiannis proceeded with the use of confidential information breaching article 9(1) of the Law. The fact that this is the first time that Mrs. Amalia Vardinoyiannis has breached a Cyprus Law was taken seriously into account before determining the fines and the Commission exercised the biggest possible - under the circumstances – leniency, since the maximum administrative fine in Article 38 of the Law is 100 thousand pounds (170,860 euros).
Based on the aforementioned investigation, the SEC decided that Messrs. Christodoulos Ellinas, Filippos Larcos, Antonis Pissarides and Giorgos Yiangou violated article 42 of the SEC Law – N. 64(I)/2001 since they provided false and misleading information to the investigators.
After taking into account the representations of Messrs. Ellinas, Larcos, Pissarides and Yiangou, the Commission decided to impose an administrative fine of €20,000 each to Messrs. Ellinas and Larcos and €10,000 each to Messrs. Pissarides and Yiangou for violating article 42 of the Law, pursuant to article 38 of the Law.
For Messrs. Ellinas and Larcos it took additionally into account that within the framework of their professional capacity, they gave false and/or misleading information to the investigators. The Commission demands by the professionals to show bigger assiduity and seriousness when called to provide information to the Commission.
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