A former Vanguard Investments Australia portfolio manager has faced a Victorian local court on more than 60 charges of improper use of his position, resulting in him allegedly personally benefiting by $600,000.
Mark Hildebrandt fronted the Magistrates' Court of Victoria yesterday accused of 63 charges of making improper use of his position as an employee of the index fund manager.
ASIC alleged between 18 May 2010 and 6 December 2010, Hildebrandt placed orders for Canadian S&P/TSX 60 Index Standard Futures contracts on the Bourse de Montréal on behalf of Vanguard, while also placing substantially matching orders for the same financial product on his personal trading account.
Each of the charges under section 601FE of the Corporations Act 2001 carries a maximum penalty of five years' imprisonment or a $220,000 fine or both.
Hildebrandt was employed by Vanguard, which acts as responsible entity for a number of registered schemes, to manage a number of these schemes focused on international equities.
ASIC alleged the matching orders were placed in a manner that Hildebrandt's personal orders would trade against the Vanguard orders at prices that enabled him to personally profit by around $600,000 at the expense of Vanguard or its registered schemes.
The corporate watchdog's investigation into the conduct of Hildebrandt arose from a referral from the Bourse de Montréal.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
Hildebrandt was not required to enter a plea. The matter has been adjourned for a committal mention hearing in the Melbourne Magistrates' Court on 15 November.
