David Einhorn and his hedge fund, Greenlight Capital, were charged with trading on inside information - but not by the SEC.  Instead, it was U.K.'s regulator, the Financial Services Authority (FSA) that accused Einhorn of illegally trading in shares of Punch Taverns - one of Britain's largest pub and bar chain operators. Einhorn, who gained fame and early fortune on his loud contrarian bets against Lehman Brothers before that firm collapsed, agreed to settle FSA charges - without admitting or denying guilt.  Einhorn and his hedge fund, Greenpoint Capital, will each pay a fine of £3.6 million - combined, the equivalent of $11 million. FSA Findings and Allegations. “On 6/9/09 [June 9th], Einhorn was a party to a telephone conference in which it was disclosed to him by a corporate broker acting on behalf of Punch Taverns Plc that Punch was at an advanced stage of the process towards a significant equity fundraising,” according to the FSA. “This was inside information and Einhorn should have appreciated this.” Minutes after the call, Mr. Einhorn gave instructions to sell all of Greenlight’s holding in Punch - a 13.3% stake.  Over the next 4 days, Greenlight managed to reduce its holding in Punch to 8.89%. On 6/15/09, following Punch Taverns's announcement that it was raising £375 million on the market, its share price fell 30%.  By selling ahead of the public announcement, Greenlight avoided nearly 6 million pounds ($9mn) in losses. Einhorn Issues Statement. Einhorn viewed the FSA action as unjust and inconsistent with the law or enforcement precedent, but the hedge fund manager decided to avoid a legal fight and move forward.  [C-I Note: After all, what's $11 million for a guy who was willing to throw away spend $200 million on a 'lifeless' baseball team in Queens, New York.]  Noting that Greenlight did not enter into a confidentiality agreement, Mr. Einhorn added that “we didn’t believe in 2009, and we don’t believe now, that there was anything wrong with our conduct and our action.” The FSA said it accepted that “Einhorn’s trading was not deliberate because he did not believe that it was inside information. However, this was not a reasonable belief.”  [C-I Note: FSA's obvious concession to the universal distaste for guiltless settlements.] For further details, go to: [DealBook, 1/25/12].