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Greenlight CCO, JPM Trade Director Charged in Insider Trading Case

January 27, 2012
Two days after David Einhorn and his Greenlight hedge fund were charged with insider trading and fined $11.5 million, the regulator announced more charges and fines.  Former fund Compliance Officer Alexander Ten-Holter and JPMorgan Cazenove trading desk director Caspar Agnew were respectively fined the equivalent of $200,000 and $100,000.   Ten-Holter also was barred from working in compliance oversight.  Both individuals are based in London. Greenlight CCO Alexander Ten-Holter was ... was charged with failing to ensure that an order to sell shares was not based on inside information.  Tracey McDermott, FSA director of enforcement and financial crime said, “Mr. Ten-Holter’s approach to compliance oversight was wholly inadequate.” JPM Cazenove trader Caspar Agnew ... was charged with not identifying that an order to sell shares in Punch Taverns, a British pub operator, could be suspicious and for not reporting it to his employer.  Greenlight’s sale was effected 2 years ago.  The FSA said that Mr. Einhorn gave an order to sell the shares just minutes after learning from a source inside the company that Punch was considering a large stock sale - which would have cause the share price to drop significantly after being announced. FSA's McDermott said that Mr. Agnew "was an experienced trader, so [he] should have been suspicious of this transaction and aware of his responsibilities to report it.” Instead, Agnew “thought that Greenlight was simply fortunate in the timing of its transactions.” The regulator nonetheless acknowledged that “Mr. Agnew’s integrity is not questioned in any way” and referred to his failure to act as an "honest misjudgment." Meanwhile, Mr. Einhorn denied any wrongdoing and denounced the regulator on Wednesday, saying that the case resembled “something more akin to a traffic cop with a quota at the end of the month and a miscalibrated radar gun.” For further details:   [Dealbook, 1/27/12].