Facts of market manipulation in on-exchange trading for investment units of Closed-end Rental Unit Investment Fund Tverskaya Usadba established

The Bank of Russia has established facts of market manipulation in on-exchange trading for investment units of Closed-end Rental Unit Investment Fund Tverskaya Usadba (ISIN: RU000A0JR0A9; hereinafter, the Units) managed by JSC GFT Unit Investment Funds over the period from 3 September 2019 to 11 February 2021 (hereinafter, the Period).

Transactions qualified as market manipulation were conducted on brokerage accounts of 33 persons¹ (hereinafter, the Persons). The Bank of Russia’s investigation has established that the Persons made a group, the participants of which were relatives and had financial, contractual and corporate relations with each other. The participants of the group had formed the market for the Units over the Period, repeatedly conducting coordinated on-exchange and over-the-counter transactions, which proves that these transactions were carried out in collusion. Over the Period, the Persons accounted for 95.5% in the sales of the Units and 99.9% in their purchases of the overall turnover. A considerable portion of the transactions conducted by the Persons caused significant deviations in the demand for, supply, price and trading volume of the Units.

According to the findings of the investigation, the transactions carried out in on-exchange trading by the Persons in collusion with each other that caused significant deviations in the trading parameters are qualified as market manipulation pursuant to Clause 2 of Part 1 of Article 5 of Federal Law No. 224-FZ, dated 27 July 2010, ‘On Countering the Misuse of Insider Information and Market Manipulation and Amending Certain Laws of the Russian Federation’ (hereinafter, the Federal Law). The Persons thus breached the ban imposed by Part 2 of Article 6 of the Federal Law.

The Bank of Russia has sent binding orders to cease and desist from similar violations in the future to the individuals G. S. Bobkova, D. V. Bulgakov, A. V. Bulgakova, D. A. Vorobyov, P. V. Geiler, A. Yu. Kozlova, V. V. Kolosov, S. A. Lobenkina, M. A. Miroshnichenko, N. V. Morozov, E. A. Morkhat, E. S. Moskalenko, E. V. Nechaeva, D. V. Pakhomov, D. S. Pestryak, E. O. Pogorelova, A. Yu. Umarova, K. A. Fedorov, and E. A. Shchelokova and the legal entities operating as of the date of this press release LLC GEILER CAPITAL, LLC ZELTA GROUP, LLC ZELTA INVEST, LLC ZELTA FINANCE, LLC Kristelin, LLC MALGANIS, LLC MFT, LLC Strelec A, LLC PLUTON,² LLC TECHNOINVEST, JSC MC Global Capital, LLC ELTEK, and LLC ULBAI. Some of these Persons are subject to administrative proceedings.

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