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Bailey McCann, Opalesque New York:
Laven Partners, a UK-based consultancy reported in a regulatory alert that Alexander Edward Ten-Holder a trader and compliance officer at Greenlight Capital, a US-based hedge fund, was fined and banned by the Financial Services Authority (FSA) last week for activities associated with the FSA’s recent actions against Greenlight for insider trading.
Greenlight Capital is the hedge fund firm of noted investor David Einhorn. As was reported last week, both Greenlight and Einhorn were recently fined nearly £6m for what the FSA calls "market abuse." The FSA claims that Eihorn had a conversation with a broker and British company Punch Taverns ahead of a fundraising initiative, prompting Einhorn to sell his position on the company, saving himself and Greenlight £5.8mn. The sell-off caused Punch’s shares to lose nearly 30% of their value.
Ten-Holter is being fined and banned because the FSA charges that as a compliance officer, he did not do enough to question the sell-off of Punch shares.
The FSA said in a statement about the decision that "under the circumstances, Mr. Ten-Holter had failed to recognize the risk of market abuse in how the instruction was communicated to him and the information he was given."
According to the FSA, the circumstances sur...................... To view our full article Click here
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