Enforcement: UK FSA fines pair for market abuse
The Financial Services Authority has at last been able to put to bed the long running saga of Sameer Patel and Robin Chhabra who have been fined GBP180,541 and GBP95,000 respectively for market abuse. Both men have been from working in the financial services industry.
Chhabra worked as a research analyst at Evolution Securities and on three occasions passed confidential information to his friend, Patel.
Patel, an experienced spread better, placed spread bets on the basis of that information, making a profit of GBP85,541.
On 21 November 2008 the Regulatory Decisions Committee of the FSA found that Chhabra and Patel had committed market abuse and imposed the penalties which, in the case of Patel includes the surrender of the profits.
Both men referred that decision to the Financial Services and Markets Tribunal (the Tribunal). After a week long hearing in October 2009 the Tribunal also found that Patel and Chhabra had committed market abuse. The Tribunal had been due to consider the penalty at a separate hearing on 31 March 2010 but the pair withdrew their notices at that point with the result that the penalties imposed in November 2008 stand.
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The Financial Crime Forum hosts Market Abuse in Singapore - June 2010. Details www.financialcrimeforum.com
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