British Broker Jailed For Unauthorized ‘Hedge Fund’ Trades

Jul 2 2010 | 10:52am ET

A British stockbroker who tried to hide £42 million in unauthorized trades by pointing the finger at a hedge fund has been sentenced to two-and-a-half years in prison.

Jonathan Bunn gave his bosses at Lewis Charles Securities the names of the traders he said were counterparties to the short-sales when queried about the trades last year. But the firm checked with the hedge fund the brokers were supposed to be working for—and the hedge fund had never heard of them.

The counterparties listed on Bunn’s trading slips also said they had played no part in the trades, leaving Lewis Charles with a £2.67 million loss on an unmatched short position in HSBC Holdings shares.

When confronted, Bunn admitted his misdeeds, and pleaded guilty to false accounting in May.

Lewis Charles said it was forced to lay off a dozen employees and cut salaries by 20% because of the losses suffered in Bunn’s trades.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...