Australia's regulator says four persons criminally charged for alleged market rigging

(Reuters) - Australia's securities regulator said on Tuesday four persons had been criminally charged after an investigation for their alleged involvement in a coordinated scheme to pump up shares in Australian stock values before dumping them at inflated prices.

The Australian Securities and Investments Commission said the accused were charged in the Downing Centre local court "with conspiracy to commit market rigging and false trading, to artificially increase the price of Australian shares before dumping them."

The accused face a maximum penalty of 15 years imprisonment and A$1 million ($664,200.00) fine for market manipulation.

The regulator alleged that the defendants formed a private group on the Telegram app named "ASX Pump and Dump Group", where they discussed and picked Australian penny stocks to announce publicly.

"Market manipulation is illegal. Pump and dump schemes are a form of financial fraud, eroding investor wealth, threatening the integrity of our markets and potentially the Australian economy more broadly," ASIC Chair Joe Longo said.

The accused have also been charged in the court for dealing with the proceeds from the alleged financial fraud.

($1 = 1.5056 Australian dollars)

(Reporting by Ayushman Ojha; Editing by Rashmi Aich)