Ex-Hedge Fund Manager Hit For Insider Trading

Sep 9 2008 | 12:48pm ET

The former hedge fund manager at the center of the U.K. Financial Services Authority’s first-ever credit market-abuse case has been fined and barred for his malfeasance.

Steven Harrison, until recently a portfolio manager in London for Moore Capital Management, will pay £52,500 (US$92,500) for insider trading. He has also agreed not to work as a fund manager for one year.

The FSA said that Harrison instructed a colleague at $15 billion Moore to buy up Rhodia bonds after getting insider information that the French chemical maker would be refinancing two years ago. Harrison had been contacted by Credit Suisse Group, which was advising Rhodia on the bond issuance, for help in setting a price for the notes. Harrison was told that Rhodia would ask its board to approve the refinancing the next day.

The regulator said that Moore turned a €44,000 (US$62,500) profit on the bonds purchased with the inside information. But it said Harrison’s conduct was not deliberate, and noted he made no personal profit. Those factors, in addition to his cooperation with the probe, led to a settlement discount on the fine.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.