Press Service

Facts of securities market manipulation by V.V. Fedorin established

The Bank of Russia has established facts of market manipulation in 17 low-liquid securities (including shares and bonds) in the period from 2011 through 2017 committed by Vladislav V. Fedorin via the unscrupulous use of assets in other persons’ broker accounts.

Being a staff member and a representative of large broker organisations in Chelyabinsk, and possessing experience in transactions with financial instruments, V.V. Fedorin obtained passwords to broker accounts from two individuals (hereinafter, the Principals) having trust-based relations with them. V.V. Fedorin used the Principals’ assets to conduct transactions in organised trading in the markets of 27 low-liquid securities.

As a result of deliberate transactions concluded in organised trading between the Principals’ broker accounts, on the one hand, and his own broker account, as well as the broker account of his spouse, Olga A. Averyanova, on the other hand, V.V. Fedorin bought the securities of his Principals at underestimated prices on several occasions. Further on, he derived income from the sale of these securities at overestimated prices; and he also sold securities to the Principals at higher prices compared to the market ones.

According to the Bank of Russia’s calculations, the above-mentioned securities transactions led to losses totalling over 5.5 million rubles for the Principals. This being the case, it was impossible for the damaged persons to independently find out that the transactions with their assets had been beneficial for V.V. Fedorin and his spouse because of the anonymous nature of trading.

Transactions between the said persons in the markets for 17 out of 27 securities, which have caused significant deviations in trading parameters, are categorised as market manipulation under Clause 2 of Part 1 of Article 5 of Federal Law No. 224-FZ, dated 27 July 2010, ‘On Countering the Misuse of Insider Information and Market Manipulation and Amending Certain Laws of the Russian Federation’.

The Bank of Russia has submitted the investigation materials to law enforcement authorities. It has also taken measures against the persons involved in bond market manipulation to prevent similar violations in future. The Bank of Russia decided to cancel the qualification certificates of a financial market specialist issued to V.V. Fedorin.