Hedge Funds Politics & Regulation

Einhorn: $11.3 million U.K. market abuse fine is “unjust and inconsistent”

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FSA says the Greenlight founder should have known better about trading in Punch Taverns stock.

   
   David Einhorn
The U.K. Financial Services Authority said today it had fined David Einhorn and his Greenlight Capital about £7.28 million, or $11.35 million, for “engaging in market abuse in relation to an anticipated significant equity fundraising” by British bar owner Punch Taverns in June 2009.

The FSA noted that Einhorn’s dumping of 11,656,000 Punch shares before the price fell nearly 30%—based on a conference call with a Punch corporate broker—was “not deliberate because he did not believe that it was inside information.”

That wasn’t enough for the FSA. “Einhorn is an experienced professional with a high profile