OJK Names Two Suspects in Mirae Asset Sekuritas Pump-and-Dump Stock Case

The Financial Services Authority (OJK) has named two suspects in the Mirae Asset Sekuritas stock market manipulation case. OJK Executive Director of Investigation for the Financial Services Sector, Inspector General Daniel Bolly Hyronimus Tifaona, said the market abuse actions were carried out by Mirae Asset in the period 2020 to 2022. ‘The suspects we have questioned and whose statuses we have elevated are two, namely Mr AS and Mr M,’ he told reporters on Wednesday (4 March). Daniel explained that based on their roles AS is the Beneficial Owner of PT BEBS and MWK is a former Director of Investment Banking at Mirae Asset. The two allegedly carried out insider trading, IPO manipulation, and fake stock transactions. He added that they traded securities or shares while conveying false material facts to mislead investors into buying the stock. ‘Regarding the failure to report affiliated parties who received fixed allotment in the initial public offering and the reporting of IPO fund usage not reflecting actual conditions,’ he explained. In addition, OJK found shell transactions involving shares controlled through a network of affiliates and nominees. Insider trading is illegal in stock investments. Investors receive information about trading gains from related company parties. ‘Involving transactions among affiliated parties involving seven corporate entities and 58 individual nominee entities, executed by six operators under the control of the suspects,’ he said. ‘The sequence of transactions is suspected to have caused BEBS stock prices in the regular market to rise significantly by up to around 7,150 percent,’ he added. Previously, OJK together with Polri raided Mirae Asset Sekuritas’ offices over allegations of securities crimes. The raid was conducted at the Treasury Tower Building in SCBD, South Jakarta, on Wednesday (4 March). CNNIndonesia.com observed that a number of investigators were seen carrying boxes of evidence from the raid.