The Alberta Securities Commission has issued a notice of hearing alleging that David De Gouveia breached Alberta securities laws and acted contrary to the public interest by creating a false or misleading appearance of trading activity in, and an artificial price for, Magellan Minerals Ltd. (TSX: V.MNM, Stock Forum) securities.
From November 3, 2008 to April 30, 2009, De Gouveia is alleged to have actively traded in the shares of Magellan Minerals, a TSX Venture Exchange listed company. ASC staff allege De Gouveia engaged in a pattern of trading that involved market manipulation hallmarks such as: upticks (trading at a higher price than the immediately preceding trade); high closes (trading at the highest price for that day); wash trades (acting as both seller and purchaser in the same transaction); and uneconomic trades (selling shares and then immediately buying shares at a higher price).
An appearance to set a date for a hearing in will be held on April 11, 2012, at 2:30 p.m. in the ASC Hearing Room on the 5th floor, 250 - 5th Street S.W., Calgary, Alberta.
Trading at 47 cents this week, Magellan has a market cap of $51.45 million, based on 109.5 million shares outstanding. The 52-week range for the stock is $1.50 and 43 cents.