The head of a British stockbroking company has been fined £2.8 million for market abuse and banned from working in the financial services industry after showing "a breathtaking disregard" for his clients.
Handing down its largest ever fine on an individual, the Financial Services Authority (FSA) said today Simon Eagle had deliberately set out to artificially ramp up the share price of UK-listed Fundamental-E Investments (FEI) in a complex, prolonged and "abusive" scheme for his own benefit.
Eagle's scheme involving FEI, which was listed on London's junior Alternative Investment Market (AIM), also involved Winterflood, the brokerage arm of merchant bank Close Brothers, which was fined £4 million in April for its role in the share ramping scheme.
Eagle and his legal team, who have been battling a case that dates back to share price moves between May 2003 and July 2004, played "procedural games" to avoid being held accountable for his actions, the regulator said.
"His (Eagle's) conduct breached the LSE's (London Stock Exchange) rules, caused significant disruption to share dealing in FEI shares, and damaged confidence in the AIM market," said Margaret Cole, the head of enforcement at the FSA.
"This scheme was rotten throughout and at the core was Simon Eagle. He showed a breathtaking disregard for his clients, for his duty as an approved person and chief executive and for the effect of his scheme on markets."
Reuters