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.