On establishing facts of market manipulation by D. Sheinin and I. Mulyavko
The Bank of Russia has established multiple and continuous facts of market manipulation on MICEX SE for ordinary shares of OJSC MMK (hereinafter, the Stock) in 2015 and 2016 committed by a group of individuals consisting of Danila M. Sheinin and Irina V. Mulyavko.
As an employee of IC MMK-Finance LLC, D. Sheinin simultaneously conducted transactions across the account of the above-mentioned company and the personal brokerage account of another employee of IC MMK-Finance LLC — I. Mulyavko held with another professional securities market participant.
Performing his professional responsibilities and acting for the account and on behalf of IC MMK-Finance LLC, D. Sheinin consistently offered sell/buy bids for the Stock, which led to the drop or rise in the Stock price. He used the situation created by these actions in order to buy/sell the Stock for the account and on behalf of I. Mulyavko at minimum/maximum prices; the difference between these prices was used to generate profits. The said scheme could reiterate several times during one trading day.
This trading conduct resulted in short-term substantial fluctuations in the prices of the Stock, as well as significant deviations in their trade characteristics and allowed D. Sheinin and I. Mulyavko to achieve positive financial result totalling dozens of millions of rubles. This amount is qualified as exceptionally large profits by the Criminal Code of the Russian Federation.
To conceal the true nature of his actions, D. Sheinin used the market maker’s services provided by IC MMK-Finance LLC with regard to the Stock.
In the course of the investigation it was established that D. Sheinin was involved in similar actions, though to a lesser degree, with other securities.
The Stock market situation conducive to the implementation of the above-mentioned illegal scheme was created at the expense of IC MMK-Finance LLC which eventually caused direct and indirect losses to the company.
According to Federal Law No.
The Bank of Russia will take relevant corrective measures regarding individuals involved in securities market manipulation, including measures aimed at improving the internal controls -of IC MMK-Finance LLC.
The Bank of Russia will submit the relevant investigation materials to the law enforcement authorities.
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16.11.2017 00.00.00