More Fines Handed Down In Greenlight Insider-Trading Case

Jan 27 2012 | 12:35pm ET

British regulators continued to levy fines for insider-trading at Greenlight Capital today—and they may not be finished.

The Financial Services Authority reprimanded Alexander Ten-Holter, a former Greenlight compliance officer and now the hedge fund's trader in the U.K., and JPMorgan Cazenove trading desk director Caspar Agnew for oversight failures. Ten-Holter was ordered to pay a £130,000 fine for failing to ensure that Greenlight founder David Einhorn's order to sell shares of British pub chain Punch Taverns was not based on confidential information. It also barred Ten-Holter from serving as a compliance officer.

The FSA also order Agnew to pay £65,000 for failing to flag the transactions as suspicious.

On Wednesday, the FSA ordered Einhorn to pay £7.2 million for ordering Greenlight to sell its entire stake in Punch after learning, from a broker, that the company was about to announce a round of equity financing. The 2009 sale helped Greenlight avoid £5.8 million in losses.

"Mr. Ten-Holter's approach to compliance oversight was wholly inadequate," the FSA's Tracey McDermott said. As for Agnew, McDermott said he "was an experienced trader," and "so should have been suspicious of this transaction and aware of his responsibilities to report it." McDermott did say that Agnew's "misjudgment" was made "entirely honestly."

Einhorn denied that he had knowingly violated British market-abuse rules, an explanation the FSA accepted.

The FSA is also investigating the broker who allegedly tipped Einhorn off to Punch's plans. Andrew Osborne, formerly of Bank of America Merrill Lynch, could be fined £350,000, Bloomberg News reports.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...