Friday, 27 March 2015
Last updated 35 min ago
Feb 16 2012 | 10:51am ET
British regulators have fined the former Bank of America Merrill Lynch broker who spilled a juicy corporate secret to Greenlight Capital's David Einhorn.
Andrew Osborne was ordered by the Financial Services Authority to pay £350,000 (US$550,000) for giving Einhorn advanced word of an equity sale by Punch Taverns, just one day after the hedge fund manager had declined to talk about Punch with Osborne on a confidential basis.
According to the FSA, Osborne told Einhorn about the fundraising on June 9, 2009, leading the hedge fund manager to sell a chunk of Greenlight's 13.3% stake in Punch. The sale helped Greenlight avoid £5.8 million in losses after Punch announced the stock sale.
Einhorn was ordered to pay £7.2 million in restitution and fines last month. A former compliance officer at the firm and a JPMorgan Cazenove trading desk director were also fined.
"Osborne engaged in serious market abuse," FSA acting head of financial crime Tracey McDermott said. "He was trusted as the gatekeeper of inside information and should have been extremely cautious in proceeding with the call with Greenlight."
Like Einhorn, Osborne insists that he did nothing intentionally wrong and that the fine was not "a fair outcome."
"None of the many advisers of others involved in this transaction believed that any inside information had been passed by me at the time or raised any issues regarding the sale of shares by Greenlight," he said. "The FSA accepts that I did nothing deliberate, dishonest or reckless and at worst this was an error of judgment."
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…