Regulators have launched High Court action against Milford Asset Management's Mark Warminger, seeking financial penalties for his alleged market manipulation.
The Financial Markets Authority, which last month reached a $1.5 million settlement with Milford, has today announced civil proceedings against Warminger - a portfolio manager at the firm who last month ceased to be involved with its investment team without explanation.
Read more:
• Morningstar puts Milford fund "under review"
• Milford drops Mark Warminger from prospectus, Gaynor picks up NZ equity role
The FMA alleges that trading undertaken by Warminger between December 2013 and August last year amounted to market manipulation.
"The FMA alleges the trading had, or was likely to have had, the effect of causing the creation of a false or misleading appearance relating to the extent of active trading in the relevant securities or the supply of, demand for, price for trading in, or value of those securities," the market regulator said.