Telegram pump and dump schemers plead guilty

Almost a year after criminal charges were brought against them, four people who were part of the 'ASX Pump and Dump Group' have pleaded guilty.

In July 2024, four individuals were charged with conspiracy to commit market rigging and false trading, to artificially inflate stock prices before selling them. They did this through a Telegram group chat called 'ASX Pump and Dump Group.'

Larissa Quinlan, Kurt Stuart, Emma Summer and Syed Yusuf pleaded guilty to conspiracy to commit market rigging and dealing with the proceeds of crime.

Quinlan, Stuart and Summer were involved in the conspiracy between about 28 August 2021 and about 22 September 2021, while Yusuf participated between about 17 September 2021 and about 22 September 2021.

Stuart and Summer each pleaded guilty to one count of dealing with money or other property that they knew to be proceeds of crime to the value of $10,000 or more.

Meanwhile, Quinlan and Yusuf each pleaded guilty to the same, with the proceeds of crime being valued at $1000 or more. However, Yusuf also pleaded guilty to one count of dealing with money or other property that was proceeds of crime, valued at $10,000 or more.

They all face a maximum penalty for the conspiracy offence of 15 years' imprisonment and a fine of over $1 million.

ASIC alleges the four individuals formed a private group on Telegram to discuss and select penny stocks that they would then share in the public Telegram group known as 'ASX Pump and Dump Group.' The names of stocks were shared to the group nine times over a three-week period in September 2021.

Each of the defendants in this case purchased some but not all the stocks they conspired to share with the public Telegram group, doing so with the intention of pumping the price before selling.

ASIC chair Joe Longo said the guilty pleas reflected the strength of ASIC's case and its commitment to acting against unlawful conduct that undermines market integrity.

"ASIC takes breaches of the market manipulation rules very seriously and as demonstrated in this matter, we will not hesitate to take enforcement action where appropriate," he said.

A sentencing hearing is yet to be scheduled.