The Australian Federal Police (AFP) raided Sydney stockbroker Evolution Capital’s head office yesterday (Wednesday), the Australian Financial Review reported. The searches are part of an investigation by the Australian Securities and Investments Commission (ASIC).
Officers also searched homes linked to founder Stephen Silver and head of trading and institutional sales Mendy Amzalak.
A follow-up AFR report linked the inquiry to trading in Vection Technologies, an ASX-listed AI and extended-reality software developer. It said officials were also examining trading in a second, unidentified ASX stock.
The investigation’s scope remains unclear. No regulator has announced a charge or accused Evolution, Vection, Silver or Amzalak of wrongdoing.
Evolution, the AFP and ASIC declined to comment to the AFR for its initial report. The newspaper said Evolution and Vection did not respond to its follow-up requests.
Contents
Capital Raising, Options and Paid Research
The relationship had several parts. Public filings show that Evolution’s work for Vection included capital raising, options and investment research.
Evolution led an A$3.55 million (about $2.54 million) placement in April 2025. Vection sold 236.67 million shares at A$0.015 each and gave investors one listed option for every two shares.
Under the lead manager mandate, Evolution received a 6% cash fee, equal to A$213,000, and 10.65 million options. The options have an A$0.018 exercise price and expire in November 2027.
Australian police raided Sydney-based brokerage Evolution Capital morning as part of an investigation by the nation’s securities regulator, the Australian Financial Review reported https://t.co/NxVBB5DqDn
— Bloomberg (@business) August 26, 2026
Evolution published a Vection update on September 2, 2025 with a Spec Buy rating and A$0.17 fair value. Vection shares were then trading at A$0.056, giving the report an implied upside of about 204%.
The research disclosure said Evolution had received a financial benefit from Vection. The benefit could include advisory, capital-raising or underwriting work.
Evolution or its associates might also hold interests in covered issuers and trade their securities in a manner inconsistent with the report’s recommendations, the disclosure said.
On September 29, Vection raised another A$21 million by selling 350 million shares at A$0.06. Evolution acted as joint lead manager and sole bookrunner, alongside Canaccord Genuity and Peloton Capital. No broker or investor options were issued in that placement.
The AFR said Vection shares had risen from A$0.015 to A$0.07 before the September 2025 capital raising, following several contract announcements, and then fell.
Vection closed at A$0.019 on Wednesday, down 13.64% for the session on volume of 5.52 million shares. That was about 68% below the September placement price and 89% below Evolution’s research valuation.
Timing alone proves nothing. Vection had already fallen below A$0.025 earlier in August.
ASIC has previously taken action against brokers over their handling of suspicious client orders.
In 2025, Societe Generale’s Australian unit paid A$3.88 million after its surveillance processes missed orders that may have manipulated futures settlement prices. ASIC has not said the Evolution matter involves similar conduct.
Silver Faced Two Previous FINRA Cases
Silver’s US regulatory record contains two final Financial Industry Regulatory Authority (FINRA) proceedings.
They are separate matters.
In 2016, FINRA suspended him for six months, fined him $10,000 and ordered $40,000 in disgorgement.
Without admitting or denying the findings, Silver agreed that he failed to notify his employer about private securities transactions with gross proceeds above $6 million. FINRA said he received $200,000 for participating.
A second case produced a five-month suspension and a $25,000 fine.
FINRA found that Silver failed to disclose securities accounts at an Australian broker-dealer and misrepresented compensation and sales activity to his employer. He again accepted the settlement without admitting or denying the findings.
The ASX cited both cases in a 2019 query to CropLogic after it appointed Silver as a director. ASX asked what CropLogic knew about the proceedings and how it had assessed his character and experience.
ASIC reported a record A$830 million in court-ordered civil penalties for the 2025-26 financial year. That enforcement total does not establish the nature or likely outcome of the Evolution inquiry.
Evolution’s website lists the firm as an authorized representative of Evolution Capital Securities. Its Australian financial services license covers advice, securities dealing and underwriting for wholesale clients.
No charge or license restriction connected to this week’s searches has been announced.
The Australian Federal Police (AFP) raided Sydney stockbroker Evolution Capital’s head office yesterday (Wednesday), the Australian Financial Review reported. The searches are part of an investigation by the Australian Securities and Investments Commission (ASIC).
Officers also searched homes linked to founder Stephen Silver and head of trading and institutional sales Mendy Amzalak.
A follow-up AFR report linked the inquiry to trading in Vection Technologies, an ASX-listed AI and extended-reality software developer. It said officials were also examining trading in a second, unidentified ASX stock.
The investigation’s scope remains unclear. No regulator has announced a charge or accused Evolution, Vection, Silver or Amzalak of wrongdoing.
Evolution, the AFP and ASIC declined to comment to the AFR for its initial report. The newspaper said Evolution and Vection did not respond to its follow-up requests.
Capital Raising, Options and Paid Research
The relationship had several parts. Public filings show that Evolution’s work for Vection included capital raising, options and investment research.
Evolution led an A$3.55 million (about $2.54 million) placement in April 2025. Vection sold 236.67 million shares at A$0.015 each and gave investors one listed option for every two shares.
Under the lead manager mandate, Evolution received a 6% cash fee, equal to A$213,000, and 10.65 million options. The options have an A$0.018 exercise price and expire in November 2027.
Australian police raided Sydney-based brokerage Evolution Capital morning as part of an investigation by the nation’s securities regulator, the Australian Financial Review reported https://t.co/NxVBB5DqDn
— Bloomberg (@business) August 26, 2026
Evolution published a Vection update on September 2, 2025 with a Spec Buy rating and A$0.17 fair value. Vection shares were then trading at A$0.056, giving the report an implied upside of about 204%.
The research disclosure said Evolution had received a financial benefit from Vection. The benefit could include advisory, capital-raising or underwriting work.
Evolution or its associates might also hold interests in covered issuers and trade their securities in a manner inconsistent with the report’s recommendations, the disclosure said.
On September 29, Vection raised another A$21 million by selling 350 million shares at A$0.06. Evolution acted as joint lead manager and sole bookrunner, alongside Canaccord Genuity and Peloton Capital. No broker or investor options were issued in that placement.
The AFR said Vection shares had risen from A$0.015 to A$0.07 before the September 2025 capital raising, following several contract announcements, and then fell.
Vection closed at A$0.019 on Wednesday, down 13.64% for the session on volume of 5.52 million shares. That was about 68% below the September placement price and 89% below Evolution’s research valuation.
Timing alone proves nothing. Vection had already fallen below A$0.025 earlier in August.
ASIC has previously taken action against brokers over their handling of suspicious client orders.
In 2025, Societe Generale’s Australian unit paid A$3.88 million after its surveillance processes missed orders that may have manipulated futures settlement prices. ASIC has not said the Evolution matter involves similar conduct.
Silver Faced Two Previous FINRA Cases
Silver’s US regulatory record contains two final Financial Industry Regulatory Authority (FINRA) proceedings.
They are separate matters.
In 2016, FINRA suspended him for six months, fined him $10,000 and ordered $40,000 in disgorgement.
Without admitting or denying the findings, Silver agreed that he failed to notify his employer about private securities transactions with gross proceeds above $6 million. FINRA said he received $200,000 for participating.
A second case produced a five-month suspension and a $25,000 fine.
FINRA found that Silver failed to disclose securities accounts at an Australian broker-dealer and misrepresented compensation and sales activity to his employer. He again accepted the settlement without admitting or denying the findings.
The ASX cited both cases in a 2019 query to CropLogic after it appointed Silver as a director. ASX asked what CropLogic knew about the proceedings and how it had assessed his character and experience.
ASIC reported a record A$830 million in court-ordered civil penalties for the 2025-26 financial year. That enforcement total does not establish the nature or likely outcome of the Evolution inquiry.
Evolution’s website lists the firm as an authorized representative of Evolution Capital Securities. Its Australian financial services license covers advice, securities dealing and underwriting for wholesale clients.
No charge or license restriction connected to this week’s searches has been announced.
SOURCE LINK : Police Raid Sydney Broker Evolution Capital in ASIC Trading Probe
