Corporate regulator Australian Securities and Investments Commission (ASIC) scored a major victory in its civil penalty case against former Select Vaccines Limited chief executive officer Dr. Martin Soust of Malvern East, Victoria after it was granted a pecuniary penalty and disqualification orders.

Federal Court Justice Goldberg issued the ruling citing Soust for purchasing Select Vaccines shares on December 31, 2007 in his mother's name. The court said the acquisition of the shares raised the price of Select Vaccines shares from 2.0 cents to 2.5 cents, or an increase of 25 percent.

Justice Goldberg ordered Soust to pay a pecuniary penalty of $80,000 and be disqualified from managing a corporation for10 years. Justice Goldberg also ordered that Soust pay ASIC's legal costs.

Soust has 21 days to appeal the ruling.

Court records showed that ASIC commenced its civil penalty proceedings on 24 December 2008. ASIC accused Soust of purchasing shares in Select Vaccines in his mother's name, shortly before the close of the market on December 31, 2007. The purchase had the effect of increasing the price of the company's shares from 2.0 cents to 2.5 cents (a 25% increase).

ASIC said that the purchase of shares created:

* An artificial price for trading in Select Vaccines in breach of s1041A of the Corporations Act 2001 (the Corporations Act); and

* A false and misleading market regarding the price for trading in Select Vaccine shares in breach of s1041B of the Corporations Act.

The watchdog alleged that Soust breached his duties as a director, improperly used his position, and failed to act in good faith in not informing the Board and Remuneration Committee of Select Vaccines of his involvement in the purchase of the shares on 31 December 2007.