LAWFUEL – The Legal Newswire – Mr Anthony Rechner, the Chairman of Perth-based mining exploration company, Eagle Bay Resources NL (Eagle Bay), has been found guilty in the District Court of Western Australia on four charges that were laid following an investigation by the Australian Securities and Investments Commission (ASIC).
The charges relate to a number of false and misleading statements made by Mr Rechner in respect of Eagle Bay’s ‘Myall Creek Gold Project’, located 25 kilometres north of Whyalla, South Australia. ASIC alleged, amongst other things, that an announcement made by Eagle Bay to the Australian Stock Exchange (ASX) on 10 September 2003 and an associated media release issued by Eagle Bay on the same date were materially misleading.
ASIC further alleged that comments made by Mr Rechner to the ASX and in its media release about the presence of copper and gold at the Myall Creek site were not substantiated by the results of a drilling program undertaken four months earlier.
The jury found Mr Rechner guilty of four charges of making materially misleading statements or statements that he ought reasonably to have known were materially misleading at the time they were made. On 16 further charges laid following ASIC’s investigation, Mr Rechner was found either not guilty or the Judge found there was no case to answer.
‘The fair, transparent and efficient operation of Australia’s capital markets is seriously undermined where false or misleading information is provided to market participants”, said ASIC’s Executive Director of Enforcement, Ms Jan Redfern.
“Maintaining and improving confidence and integrity in Australia’s capital markets is a priority area for ASIC and strong enforcement action will be taken to support this goal where necessary.”
ASIC’s investigation commenced following a referral from the ASX. Mr Rechner is automatically disqualified from being a company director for five years.
The matter has been adjourned for sentencing on 27 September 2007.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
