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

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Ex-Hedge Fund Billionaire Won’t Run For Senate

Jan 23 2015 | 5:48am ET

Ex-hedge fund manager Tom Steyer will not run for Senate after Sen. Barbara Boxer...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note