FMA Accuses NTL CEO of Information-based Market Manipulation

The Financial Markets Authority (FMA) announced that it has filed civil High Court proceedings against Matthew Geoffrey Hill, the Chief Executive Officer of NZX-listed New Talisman Gold Mines Limited (NTL), for alleged information-based market manipulation and making false and misleading representations. 

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The case relates to anonymous posts Hill allegedly made about the company on the Sharetrader website's online investor forum. Between February 2013 and July 2020, Hill made dozens of posts on Sharetrader in a thread about New Talisman under two usernames, "bullish" and "Epithermal". The FMA claims that Hill, who is also a director and shareholder of New Talisman, did not, at any point, disclose his involvement in the company. Hill's conduct was revealed in July 2020 when Sharetrader publicly identified him as the person behind the usernames.

"Market manipulation undermines confidence in financial markets, especially if it is by a senior executive at a listed company. We considered Mr Hill's conduct warranted a strong response to demonstrate that such actions will not be tolerated, and to maintain confidence in New Zealand's markets," said Karen Chang, FMA Head of Enforcement. "This case is an important reminder that information-based market manipulation can occur on social media and forums, where investors are increasingly gathering to discuss stocks. Investors should be careful when using forums to inform their investing decisions as they can be exploited by vested interests."

The FMA is seeking from Hill a declaration of contraventions, a pecuniary penalty and costs.