One of the stars of the hedge fund industry was fined £7.2 million in January by the U.K. ($11 million). David Einhorn, along with his firm Greenlight Capital, was ruled to have crossed the line for insider trading.
“This was a serious case of market abuse by Einhorn,” according to the British Financial Services Authority (FSA). They say Einhorn got a friendly phone call telling him a company called Punch Taverns was about to try raising money again. Greenlight sold 11,656,000 shares of this pub chain, since their value was about to tank. FSA says they would have lost the equivalent of $9 million, according to .
FSA fined the company chief 3.65 million pounds and Greenlight 3.65 million. Ironically Einhorn “is known for public crusades against abuses by public companies,” according to reporter Tommy Wilkes. Einhorn, a lifelong Mets fan, was in the news last year over his attempt to buy a large minority stake in the New York Mets.