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Macquarie Denies Claims Its Brokers Manipulated Mining Stock

  • Cleveland Mining investors alleged ‘pump and dump’ operation
  • Allegations are ‘unsubstantiated,’ Macquarie’s Ward says

Macquarie Group Ltd. 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.

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.