Source: Central Bank of the Russian Federation in English
The Bank of Russia has established facts of manipulation during trading at the exchange in the markets for units of Closed-end Rental Unit Investment Fund Holy Land (ISIN: RU000A0JVUU7) and Closed-end Rental Unit Investment Fund Kottedzhio Park (ISIN: RU000A0JUUC7) managed by Asset Management Solutions LLC (hereinafter collectively, the Units and the Funds) during the period from October 2014 to July 2018 (hereinafter, the Period).
Trading in the market for the Units during the Period was mostly carried out by concluding transactions in collusion between two unrelated groups of entities and individuals.
The first group (Group 1) included entities and individuals related in various ways: LLC Canopus Finance (TIN 5406771420; previously — LLC Krasoil Finance ), LLC Cataris Capital (TIN 7733224572), LLC Managing Partner Cross Finance Group (TIN 7718309373), LLC Investment Company Energyiya Sintez (TIN 7702626754) and its legal successor Investment Company Averazh Ltd (TIN 2635107776), HAYFOLD COMPANY LTD (HE 313274), Viktor Oparin, Yury Sokolov, Alexandr Shakirov, Vadim Shakirov, Nikita Bushuev, Eduard Golubovich, Andrey Grishin, Alexandr Margolis, Alexey Shchepelev and Alexey Yakovlev.
The investigation has established circumstances evidencing that the most probable intentiom of transactions in the Units conducted by the above entities and individuals during the Period was to simulate trading activity and maintain acceptable prices for and trading volumes of the Units. These transactions caused significant deviation of the price for the Units.
The second group (Group 2) included related persons Dmitry Malakeev, Arsen Movsesyan and Roman Volkov who conducted Unit transactions in collusion during the period from November 2015 to November 2016. These transactions caused significant deviation of the price for the Units.
The Bank of Russia has also established signs of distortion in the price stated by appraisers when compiling reports on the valuation of the real estate being part of the Funds’ asset portfolios. In particular, the Bank of Russia has established that the land plots for sale offers used as comparables in the valuation were posted in the internet using the IP address of a valuation company employing the appraiser who had prepared and signed the valuation report.
Pursuant to Clause 2, Part 1, Article 5 of Federal Law No. 224-FZ, dated 27 July 2010, ‘On Countering the Misuse of Insider Information and Market Manipulation and Amending Certain Laws of the Russian Federation’ (hereinafter, the Federal Law), the actions of the entities and individuals from Group 1 and Group 2 are classified as manipulation in the market for the Units. The actions committed by LLC Cataris Capital, LLC Canopus Finance, IC Averazh Ltd, LLC Managing Partner Cross Finance Group, HAYFOLD COMPANY LTD, Nikita Bushuev, Eduard Golubovich, Andrey Grishin, Alexandr Margolis, Alexandr Shakirov, Alexey Shchepelev and Alexey Yakovlev with the purpose of deceit as to the price of the Units are also classified as manipulation in the market for the Units in accordance with Clause 6, Part 1, Article 5 of the Federal Law.
The above entities and individuals breached the ban imposed by Part 2, Article 6 of the Federal Law.
The Bank of Russia has sent orders to avoid similar violations in future to the individuals and operating legal entities who conducted the above transactions with the Units.
04 December 2019
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