FAS fined Einhorn and Greenlight Capital for Insider Trading

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The FSA, U.K financial authority, fined David Einhorn and Greenlight Capital Inc. 7.2 million pounds ($11.2 million) for trading on inside information in 2009.  

According to FSA, Greenlight’s chairman David Einhorn was tipped off about Punch Taverns’s plan to sell securities by a broker representing the company.    Subsequently, Einhorn sold more than 11 million Punch Tavern shares over the following four days; thus, avoiding losses of close to 5.8 million pounds for the fund.

The fine against Einhorn is the second-largest civil penalty imposed against an individual by the FSA, as FSA facing criticism for failing to preventU.K.’s financial crisis.

Anna Timone (195 Posts)


Comments

  1. So he took inside information and saved the fund 53 cents a share (5.8 / 11)?!

    Really?!

    I’m not condoning what this guy did, but if you’re going to do something wrong don’t do it a little wrong, go all the way.

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