Four people who used Telegram group chats to inflate the share prices of Australian stocks before selling them at a profit have been fined and sentenced to prison terms to be served in the community, following proceedings in the Sydney District Court on Friday.
The four offenders pleaded guilty in June 2025 to conspiracy to commit market rigging and offences related to dealing with the proceeds of crime.
The conduct involved so-called “pump and dump” schemes, in which coordinated trading and promotion artificially increased the prices of low-value shares before they were sold, leaving later investors with losses.
The court imposed intensive corrections orders (ICOs) ranging from 14 months to two years.
Larisa Quinlan was sentenced to an ICO of one year and nine months. She was also ordered to complete 160 hours of community service, comply with additional conditions, and pay a fine of AUS$8,015 (US$5,322).
Kurt Stuart received an ICO of two years, with 200 hours of community service and additional conditions, and was fined $22,270.11 (US$14,785).
Emma Summer was sentenced to an ICO of one year and 10 months, ordered to complete 160 hours of community service, and fined $16,030 (US$10,637).
Syed Yusef received an ICO of 14 months, with 120 hours of community service and additional conditions. The court also made a pecuniary penalty order requiring him to pay $13,464.89 (US$8,935) to the Commonwealth under the Proceeds of Crime Act 2002 (Cth).
All four must comply with standard ICO conditions, including supervision by a community corrections officer and not committing further offences.
ASIC Chair Joe Longo said the conduct undermined confidence in financial markets.
“Pump and dump trading isn’t just illegal, it damages trust in our financial markets, and people lose hard-earned money,” Longo said.
“This group used social media to rig the market, artificially pump-up penny stocks, then dump them for quick profits – leaving everyday investors to wear the losses.”
He said ASIC pursued the matter to hold those involved accountable and deter similar conduct.
“It is an ongoing priority for ASIC to target activity that undermines market integrity,” Longo said.
In sentencing, Judge Turner said the seriousness of the offending lay not in how long it occurred, but in the agreement to engage in criminal activity. She found each offender was an active participant in the conspiracy and motivated by financial gain.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions following a referral from the Australian Securities and Investments Commission (ASIC).
Conspiracy to commit market rigging, intentionally manipulating supply or demand for financial products to create a false or misleading impression of market activity, is an offence under Australia’s Criminal Code (Cth) and the Corporations Act 2001 (Cth).
ASIC laid charges against the four defendants in July 2024.
The regulator said it monitors trading on Australian licensed markets using real-time surveillance systems and data analysis to identify coordinated trading and suspected “pump and dump” activity.
ASIC has previously issued public warnings about social media-driven share trading schemes, including during the COVID-19 pandemic, and has run investor education campaigns cautioning against hype-driven investing.
