ARTICLE
1 May 2012

AFM Issues Fine For Market Manipulation (Homburg)

DB
De Brauw Blackstone Westbroek N.V.

Contributor

De Brauw Blackstone Westbroek is a leading international law firm, trusted by clients for over 150 years due to its deep engagement with their businesses and a clear understanding of their ambitions. While rooted in Dutch society, the firm offers global coverage through its network of top-tier law firms, ensuring seamless, tailored legal solutions. De Brauw’s independence enables it to choose the best partners while remaining a trusted, strategic advisor to clients worldwide.

The firm emphasizes long-term investment in both its client relationships and its people. De Brauw’s legal training institutes, De Brauwerij and The Brewery, cultivate diverse talent, preparing the next generation of top-tier lawyers through rigorous training and personal development. Senior leadership traditionally rises from within, maintaining the firm’s high standards and collaborative culture.

On 21 December 2011, the AFM imposed a EUR 96,000 fine on Mr Homburg, a former director of Homburg Invest, a real estate fund in distress.
Netherlands Criminal Law

On 21 December 2011, the AFM imposed a EUR 96,000 fine on Mr Homburg, a former director of Homburg Invest, a real estate fund in distress. In the AFM's view, Mr Homburg disseminated information during a TV program that gave an incorrect and misleading signal with regard to the share price of Homburg. In doing so, Mr Homburg violated the prohibition on market manipulation as set out in the FMSA.

In the interview, Mr Homburg suggested that a press release containing positive news would be issued just prior to an annual general meeting in 2009. According to the AFM, he did this even though he should have reasonably understood that investors would in fact respond negatively to the press release because it would mention that no dividend would be paid for 2009. During the days after the interview, Homburg Invest stock rose by more than 38%. But after the press release it fell to a lower level than before the interview. During this period no other relevant news about Homburg Invest was published.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More