21.08.2012

Not Being Fit And Proper

  • Dishonest course of conduct,
  • Exploiting and abusing a position of trust,
  • Lack of skill, Care and Diligence.
  1. Tribunal upholds FSA decision to ban and fine former UBS advisers £1.3m for not being fit and proper in relation to an unauthorised trading scheme, FSA/PN/057/2012ü, 21 May 2012.
  2. Head of European Credit Sales at Credit Suisse fined £210,000 for improper market conduct, disclosing client confidential information and exhibiting a lack of skill, care and diligence. FSA/PN/026/2012,13 Mar 2012.
  3. FSA imposes £2.17 million fine for failure by Direct Line and Churchill to conduct their businesses with due skill, care and diligence, FSA/PN/003/2012, 18 Jan 2012.
  4. FSA bans and fines former UBS adviser £150,000 for not being fit and proper, FSA/PN/115/2011, 16 Dec 2011.
  5. FSA fines and bans hedge fund Compliance officer £14,000 for failing to act with due skill, care and diligence, FSA/PN/099/2011, 22 Nov 2011.

Land Banking

Unauthorised Land Banking Operations:
  • Unauthorised collective investment scheme that sells plots of land on particular sites.
  • Land banking often amounts to collective investment that requires authorisation.

AML Noncompliance

Managing AML Non-Compliance

If you cannot manage compliance, someone (somewhere) will force you to comply with AML laws and regulations:
  1. FSA requires action of the HSBC Group
  2. Complince Program failings,  FSA/PN/081/2012, 02 Aug 2012
  3. FSA fines Habib Bank AG Zurich £525,000 and money laundering reporting officer £17,500 for anti-money laundering control failings,  FSA/PN/055/2012, 15 May 2012.
  4. FSA fines Christchurch Investment Management Limited and compliance officer for client money breaches, FSA/PN/046/2012, 01 May 2012
  5. Coutts fined £8.75 million for anti-money laundering control failings, FSA/PN/032/2012,  26 Mar 2012.
  6. Former compliance officer at Greenlight Capital and JP Morgan Cazenove trader fined, FSA/PN/007/2012, 27 Jan 2012.
  7. Francois de Dietrich sentenced to 18 months imprisonment for failure to comply with Court Order and to cooperate with FSA investigation, FSA/PN/016/2011, 28 Jan 2011.
  8. Former senior manager sentenced to 27 months in prison for insider dealing and money laundering, FSA/PN/010/2011, 21 Jan 2011.
  9. Senior manager found guilty of insider dealing and money laundering, FSA/PN/168/2010, 26 Nov 2010.
  10. FSA fines Goldman Sachs International £17.5 million for weaknesses in controls resulting in failure to provide FSA with appropriate information, FSA/PN/141/2010, 09 Sep 2010.
  11. FSA fines Société Générale £1.575 million for failures in transaction reporting, FSA/PN/135/2010, 25 Aug 2010.
  12. FSA fines Alpari and its former money laundering reporting officer, Sudipto Chattopadhyay for anti-money laundering failings, FSA/PN/077/2010, 05 May 2010.
  13. FSA fines Commerzbank for failures in transaction reporting, FSA/PN/073/2010, 27 Apr 2010
  14. FSA fines Barclays £2.45m for failures in transaction reporting, FSA/PN/117/2009, 08 Sep 2009.
Consequences of AML Non-Compliance
  • Enforcement actions- civil and criminal penalties
  • Reputational risk.
  • Lose of Job

Boiler Rooms Selling

Boiler Room Scams-Boiler Room Fraudsters

Fraudsters offer shares to the public without a prospectus through boiler room fraudsters.
Unauthorised businesses carries a great deal of risk to the public.

What is it ?

 New type of Fraud:
  • Boiler room: The criminals employ high pressure sales tactics
  • Boiler rooms operations are share scams and are the scourge of investors. 
  • The operator will sell worthless shares at inflated prices to investors that are impossible to sell.
  • The company they are share dealing in will probably be listed on an illiquid market, so the shares cannot be sold, and the price will be hugely inflated.
Financial/Economic Crime (Market Abuse):
  1. FSA secures redress for victims of boiler room scam, FSA/PN/074/2012, 19 Jul 2012. 
  2. FSA secures four and a half year jail sentence for man convicted of laundering boiler room funds, FSA/PN/045/2012, 30 Apr 2012
  3. FSA secures €77,000 for victims of boiler room fraud, FSA/PN/016/2012, 17 Feb 2012
  4. Three sentenced to jail for operating £27.5m boiler room scam, FSA/PN/073/2011, 22 Aug 2011
  5. Chartered accountants fined and banned for assisting multi-million pound boiler room share scam, FSA/PN/176/2010, 15 Dec 2010.
  6. FSA prohibition of Andrew Greystoke and £400,000 fine on him and Atlantic Law LLP for aiding multi-million pound boiler room share scam upheld, FSA/PN/079/2010, 13 May 2010.
  7. Boliler Room Scams
     

20.08.2012

Insider Dealing

Insider dealing involves criminal elements. It is a sophisticated scheme that involves criminal behaviour aiming to profit from exploiting confidential and price sensitive information.

Financial Crimes-Market Abuse-Insider Trading: Cases 
Insider dealing and money laundering are serious crimes.
  1. Insider dealers ordered to pay £1.5m in confiscation, FSA/PN/082/2012, 20 Aug 2012
  2. Six sentenced for insider dealing, FSA/PN/080/2012, 27 Jul 2012
  3. Three sentenced for insider dealing, FSA/PN/067/2012, 20 Jun 2012
  4. Insider dealer ordered to pay £570,000 in confiscation, FSA/PN/050/2012, 08 May 2012
  5. Richard Joseph charged with insider dealing, FSA/PN/002/2012, 11 Jan 2012
  6. Management consultant found guilty of insider dealing and sentenced to two years, FSA/PN/114/2011, 15 Dec 2011
  7. Investment banker and two associates charged with insider dealing, FSA/PN/069/2011, 04 Aug 2011.
  8. Investment banker, his wife and family friend sentenced for insider dealing, FSA/PN/018/2011, 02 Feb 2011.
  9. Former senior manager sentenced to 27 months in prison for insider dealing and money laundering, FSA/PN/010/2011, 21 Jan 2011.
  10. Senior manager found guilty of insider dealing and money laundering, FSA/PN/168/2010, 26 Nov 2010.
  11. Five charged with insider dealing, FSA/PN/166/2010, 25 Nov 2010.
  12. Ex-hedge fund trader sentenced for insider dealing, FSA/PN/104/2010, 22 Jun 2010
  13. One arrested in FSA and CoLP insider dealing investigation, FSA/PN/083/2010,19 May 2010
  14. Six arrested in FSA and SOCA insider dealing investigation, FSA/PN/052/2010,23 Mar 2010
  15. Former Cazenove partner found guilty of insider dealing, FSA/PN/041/2010,10 Mar 2010
  16. Three arrested in FSA insider dealing investigation, FSA/PN/017/2010,29 Jan 2010.
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