The Financial Services Authority (FSA) has today published final notices fining and banning three individuals for engaging in market abuse.
On 28 September 2012 the Upper Tribunal (Tax and Chancery Chamber) directed the FSA to fine Stefan Chaligné, a Swiss-based hedge fund manager, £900,000 (plus disgorgement of the financial benefit he obtained in the amount of €362,950) and Patrick Sejean, a former senior salesman on Cantor Fitzgerald Europe's (CFE) London-based French desk, £650,000.
The Tribunal also directed the FSA to ban both individuals, and Cheickh Tidiane Diallo, a junior trader, from performing any role in regulated financial services.
Sejean's penalty was deferred pending the Tribunal's decision on his application that his fine should be reduced on the grounds that it would cause him serious financial hardship.
On 6 December 2012 the Tribunal released its decision (which Sejean has not appealed) regarding Sejean's financial hardship application.
The Tribunal was not satisfied that Sejean provided a complete and wholly truthful account of his assets and liabilities, and therefore could not be satisfied that he had established hardship.
Further, even if he had been able to show some hardship, it would be tempered by his profligate spending, which was a further indication of his unwillingness to take responsibility for his actions.
Tracey McDermott, director of enforcement and financial crime, said:
"We particularly welcome the Tribunal's finding that, given the seriousness of Sejean's conduct, the severity of the punishment would have been reduced only in the face of clear evidence of excessive hardship.
Sejean was unwilling or unable to provide this and the judgment highlights the importance of cooperating with the FSA at all stages of the regulatory process."
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