Tuesday, 22 July 2014
Last updated 10 hours ago
Sep 28 2010 | 11:09am ET
A former broker who paid kickbacks to the hedge fund trader who entered the first-ever insider-trading guilty plea in the U.K. has been fined and barred from the securities industry.
Fabio Massimo De Biase was ordered to pay £198,000 in restitution and £54,239 of a £500,000 fine, the latter reduced due to financial hardship. De Biase, who worked at TFS Derivatives, admitted paying Ahmad, then at AKO Capital, £131,000 in exchange for business from January 2008 until last September. AKO was overcharged by US$739,000 through the scheme.
De Biase cooperated with the Financial Services Authority’s investigation, which also included Ahmad’s insider-trading admission. Ahmad said he traded 22 different securities based on confidential information in May and received a 10-month suspended sentence. He was also fined £131,000 for the kickbacks scheme and another £156,000 in restitution and fines for the insider-trading.
“De Biase exploited the trust of his employer and his client,” the FSA’s Margaret Cole said. “This substantial fine and the ban from working in the financial services industry are significant penalties and should serve as a reminder that such behavior is woefully short of that expected of approved persons and will not be tolerated.”
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…