David Einhorn, the high-profile American hedge fund manager who foresaw major problems at Lehman Brothers before the Wall Street bank collapsed, got a 3.6 million pound ($5.6 million) fine in Britain on Wednesday for trading on inside information.
Britain's Financial Services Authority (FSA) fined Einhorn and his Greenlight Capital Inc firm a total of 7.2 million pounds for market abuse in relation to an anticipated equity fundraising by Punch Taverns Plc in June 2009.
Einhorn himself got a 3.64 million pound fine, while the Greenlight Capital company was fined 3.65 million pounds. The FSA said that on June 9, 2009, Einhorn was a party to a telephone conference in which it was disclosed to him by a corporate broker acting on behalf of pubs group Punch Taverns that Punch was at an advanced stage of the process towards a significant equity fundraising.
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