Macquarie Group has denied allegations that some of its brokers and wealth advisers manipulated stock prices or failed to act on client instructions regarding the collapse of Cleveland Mining Co. shares.
Bloomberg News reports that disgruntled investors and Cleveland Mining executives alleged at a parliamentary hearing in Melbourne on Thursday that some of Macquarie’s wealth advisers ran a “pump and dump” operation on the stock. One witness claimed he lost A$4 million ($3.1 million) after Macquarie brokers directed him to the shares despite his conservative risk profile.
“We have taken the allegations made with the utmost seriousness and have investigated them thoroughly,” Greg Ward, Macquarie’s head of banking, said at the hearing. “Having investigated the allegations, we are satisfied they are unsubstantiated.”
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