Ex-Broker Fined, Barred For Kickback Scheme At AKO

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.”


In Depth

Firm Focus: Sustainable Insight Capital Bullish On ESG

Aug 12 2014 | 9:18am ET

Bruce Kahn spent over 15 years as a research scientist/consultant on environmental...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note