Japanese regulator Securities and Exchange Surveillance Commission recommended on Wednesday that a Singapore-based hedge fund should pay a hefty fine for market manipulation.
SESC said in a statement that Juggernaut Capital Management should pay $4.38 million for inflating the share price of real estate developer Rise for 26 business days last year between March 21 and April 25.
The regulator alleged that Juggernaut placed large orders for the shares at high prices using a fund it controlled in the Cayman Islands to give investors the impression that Rise had strong demand, while simultaneously selling the shares. The firm profited about $2 million illegally as result.
The Financial Services Agency will need to approve the fine.
Juggernaut was founded by former Lehman Brothers’ managing director Yashwant Bajaj in 2011.