Posts Tagged ‘JP Morgan’

FSA fines two more over Greenlight insider trading after David Einhorn / Siim

03/02/2012. Tags: , , , , , , , , | This post has no Comments

The Telegraph writes that two more individuals connected to US hedge fund Greenlight Capital have been fined over a multi-million pound insider-dealing case.

The City regulator fined Alexander Ten-Holter, Greenlight’s compliance officer, £130,000 and JP Morgan trader Caspar Agnew £65,000.

Both individuals were censured for failing to either identify or ask questions about Greenlight’s trading in Punch Taverns. The hedge fund sold significant tranches of Punch shares knowing the company was about to raise money, a move almost certain to drive Punch’s shares down.

Despite being told by a Greenlight analyst that the hedge fund had just spoken to Punch management and knew “secret bad things”, Mr Ten-Holter “took no steps to satisfy himself that the order was not based on inside information,” according to the FSA.

The regulator said Mr Agnew also became aware that Greenlight may have been trading on inside information but failed to act. Mr Agnew said he thought Greenlight was just “fortunate” in its timing.

Greenlight founder David Einhorn was fined £7.2m together with his fund for insider dealing. The fine’s size and action against the compliance officer shows a ramping up of FSA enforcement.

Read whole story …

UK FSA’s attack against alleged insider dealing ring / Mait

30/07/2008. Tags: , , , , | This post has no Comments

Eight arrests have been made in connection with a major investigation into insider dealing rings by the UK FSA. Workers at Swiss bank UBS and JP Morgan Cazenove, one of the oldest names in the City, were arrested for alleged insider dealing yesterday according to the sources of the Financial Times.

Arrests were carried out in cooperation with City Police who become involved because the FSA has no powers of arrest. City of London police and 40 FSA officials raided premises throughout London and the South East in what the regulator described as “a major ongoing investigation into insider dealing rings”.

The FSA suspects that the alleged ring traded on price sensitive information contained in deal announcements produced at one or both of the banks’ printing plants but which had yet to be made public.

This is the third high-profile action the FSA has taken in the past week over insider trading, in a sign of a tougher approach to a problem the regulator believes is rife in the City and a threat to the integrity of the markets.

Last week, a former partner at the investment bank Cazenove pleaded not guilty to a series of charges brought by the FSA. In only the second criminal case brought by the FSA, Malcolm Calvert was accused of acquiring shares, with inside information, in several companies earmarked for management buyouts, takeovers or mergers. Mr Calvert was remanded on bail, with the case adjourned until September 11.

The FSA launched its first criminal prosecution for insider dealing in January, it has ramped up its focus on market abuse in recent months, after an unprecedented slump in the shares of mortgage bank HBOS.

The FSA’s high-profile crackdown sends a serious warning to the City, where criminal prosecutions are seen as a new threat. The offence carries a maximum sentence of seven years in prison.

The FSA has more than doubled the size of its team of lawyers and investigators with criminal expertise and has announced plans to make more use of jail sentences, along with civil fines.

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