West Palm Beach (HedgeCo.Net) – A Canadian hedge fund manager has been charged with market manipulation after partaking in shady trading practices.
Darren Delage was reportedly trying to boost the price of Environmental Applied Research Technology House Earth Corp. while he was simultaneously trading for Polaris Securities energy hedge fund, according to the Ontario Securities Commission.
In 2005, Delage allegedly traded the EAR shares just prior to the market closing to boost the price, as well as entered into trades at higher prices than the recent reported trades. Polaris fired him that July after an extensive investigation into his dealings.
The OSC asserted that Delage engaged in trading which “he knew or ought reasonably to have known…would result in or contribute to a misleading appearance of trading activity in EAR shares, or an artificial price for those shares.”
Delage was trading for the Polaris Energy Offshore Master Fund, an offshore hedge fund that manages $25 million. The fund is valued monthly on the basis of the closing price of the securities held on the last trading day of the month.
The court hearing is scheduled for April 29 in Toronto.
Julie Scuderi
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