The publisher of a Web site that the Australian financial regulator says included unlicensed securities reports on the Internet has been jailed today in Australia for three months.
Stephen Lewis Matthews, the operator of The Chimes, at http://www.chimes.com.au , was sentenced today by the Supreme Court of New South Wales and imprisoned for contempt of court.
The case was brought by the Australian Securities and Investments Commission (ASIC), which is attempting to crack down on Web sites that break the law by offering shares for sale without the proper processes, or stock market advice without the proper licenses.
ASIC's fight to close down The Chimes has been going on for well over a year, during which time it went offline temporarily and relocated in New Zealand. It's owner however, Stephen Matthews, received a two months suspended jail sentence when he pleaded guilty in a Federal Court to continuing to publish investment advice without a license on the Internet in breach of an order from a court.
The discussion forum on the investing Web site known as the Chimes Index had, in the past, been associated with heavy trading in listed Australian technology stocks after favorable reports appeared there.
The Web site discussion forum was suspended on orders from the Federal Court. It since reopened, hosted in New Zealand at http://www.chimes.co.nz , where it currently operates although Matthews is still resident in Australia. ASIC continued its pursuit of Matthews, saying that the stock tips and share discussions are still targeted at Australian residents.
The Supreme Court of New South Wales issued injunctions in March preventing Matthews from dealing in securities, including any dealing on the Internet. It also demanded Matthews publish a notice on the Web site saying he is not licensed to deal in securities or provide investments advice.
On March 23, the Supreme Court found Matthews guilty of contempt of court after he continued to publish online in breach of the injunctions.
Justice Windeyer, in making his decisions on a penalty, said that it was inappropriate to give Matthews a fine, rather it was "necessary to impose a term of imprisonment to ensure integrity of the system of justice."
Matthews was sentenced to three months, starting immediately.
Written By Adam Creed - Newsbytes